Welcome to today’s Daily Market Update. In this report, we’ll take a look at the latest debt-ceiling updates, US President Joe Biden’s upcoming meeting with congressional leaders, and the economic reports that may impact the market. We’ll also provide updates on the stock market, crude oil, and cryptocurrencies.
On Monday, Wall Street eked out gains as markets tracked the latest debt-ceiling updates. The lack of meaningful progress continues to wreak havoc on investor confidence as the June 1 deadline rapidly approaches. While the default risk is still an unlikely scenario, the consequences of such an incident are very real.
US President Joe Biden is scheduled to meet with House Speaker Kevin McCarthy and other congressional leaders on Tuesday, ahead of his departure for the G-7 summit in Japan. The meeting is expected to focus on the ongoing debt-ceiling negotiations, as well as other legislative priorities. Any developments from this meeting could have a significant impact on the market.
In economic news, the Federal Reserve Bank of New York reported that manufacturing activity in New York fell more than expected and back into contraction territory in May. The gauges for orders and shipments tumbled, while spending intentions weakened. This news could indicate potential weakness in the manufacturing sector and could impact related stocks.
Separately, the New York Fed reported that US household debt in the first quarter rose 0.9% sequentially to $17.05 trillion on the back of a higher mortgage balance. Mortgage originations, which include refinances, plunged to $324 billion, the lowest level since Q2 of 2014. These reports could indicate potential issues with consumer debt and could impact related stocks.
The Nasdaq Composite rose 0.7% to 12,365.2, and the S&P 500 gained 0.3% to 4,136.3. The Dow Jones Industrial Average closed 0.1% higher at 33,348.6. These gains could be attributed to positive sentiment regarding the ongoing debt-ceiling negotiations. However, any negative developments could quickly reverse these gains.
West Texas Intermediate (WTI) crude oil increased 1.4% to $71 per barrel on Monday. This increase may be due to increased demand for oil as global economies continue to recover from the COVID-19 pandemic.
Bitcoin (BTC) changed hands at $27,397, up 2% in the last 24 hours, after reaching a day low of $26,766. Ethereum (ETH) was up 1.9% at $1,829. These gains could be attributed to positive sentiment in the cryptocurrency market. However, as with any market, there are risks involved, and prices could quickly change.