- U.S. stocks fell on Thursday as investors monitored the progress of the debit limit agreement.
- The House passed bipartisan debt limitation legislation on Wednesday night.
- Traders are also looking ahead to the Fed’s next policy meeting on June 13-14.
U.S. stocks fell on Thursday to kick off June as investors watched the debit limit deal pass through Congress.
The House passed bipartisan legislation late Wednesday, allaying fears of a potential US default. It now goes to the Senate. President Joe Biden called the result “good news for the American people and the American economy.”
Traders are also eagerly awaiting the Federal Reserve’s next policy meeting on June 13-14, when central bankers will deliberate on their next rate decision. The Fed has raised borrowing costs 10 times in a row since March 2022 in an effort to rein in high inflation.
Philadelphia Fed President Patrick Harker said Wednesday he felt inclined to “jump” another interest rate hike.
Here’s where the U.S. indices were shortly after the 9:30 a.m. ET open on Thursday:
Elsewhere, the 2023 crypto market rally appears to be cooling as macro uncertainty rises. Bitcoin recorded its first monthly loss of 2023 as traders navigated between central bank tightening and stubborn inflation.
“When there is a sense of fear in the market, investors tend to flock to safer assets, such as gold and government bonds,” said Brigham Santos, COO of the financial services provider. blockchain Llama, to Insider. “This may lead to a sell-off of riskier assets, including bitcoin. In addition, central bank tightening may also lead to lower bitcoin prices.”
Santos added: “It could work like a domino effect by generating higher interest rates, which can make it harder to borrow money to invest back. [into] bitcoins.”
Here’s what else is going on:
In commodities, bonds and crypto: