US pre-open: Stocks seen down ahead of further debt ceiling talks
By Michele Maatouk
Date: Wednesday 24 May 2023
(Sharecast News) - US futures pointed to another downbeat session on Wall Street on Wednesday as debt ceiling negotiations between the Republicans and the White House failed to make any progress, with talks due to resume later in the day.
At 1215 BST, Dow Jones Industrial Average futures were down 0.4%, while S&P 500 and Nasdaq futures were 0.3% lower.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "President Joe Biden and House Republican Speaker Kevin McCarthy need to find compromise on taxes and spending but are conscious any deal needs also to garner the support of congressional colleagues to pass.
"A wait and see mood is also set to prevail before the minutes of the Federal Open Market Committee's May meeting are published, with investors eager to assess the latest thinking of policymakers when it comes to interest rates, and whether a pause or another hike is more likely. While the door is clearly open to a pause, it's by no means locked in and Tuesday's PMI showing a more buoyant private sector than forecast, is raising some concerns that another hike could be in store in the months to come."
The Federal Reserve minutes are scheduled for release at 1900 BST.
In corporate news, Kohl's shares surged in pre-market trade after the department store chain beat expectations by reporting a surprise first-quarter profit.
Results are also due from Nvidia and American Eagle Outfitters.
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