Today's market events:
US stocks closed lower on Tuesday on concerns that debt ceiling talks in Washington will fail to reach an agreement.
S&P 500 index - 1.12%. Dow Jones - 0.69%, Nasdaq Composite - 1.26%.
Government bond markets saw yields fall across the curve on Tuesday. The yield on the 10-year bond, which is considered the benchmark, fell 3.7%. Two-year yields rose to 4.34% and 30-year bonds fell slightly to 3.95%. The losses come as concerns grow over the impasse over the debt ceiling.
Negotiations on Tuesday had initially raised hopes of a deal. This followed optimistic statements from President Biden and House of Representatives Speaker Kevin McCarthy the previous day.
However, McCarthy reportedly said in an internal meeting with Republican colleagues that "we're a long way from a deal yet" hours after declaring, "I think at the end of the day we'll find common ground."
"Our fundamental assumptions still remain that the debt ceiling will eventually be raised and could trigger significantly more market volatility than the market currently perceives," Dubravko Lakos, chief U.S. equity strategist at JPMorgan, wrote in a note on Monday.
I don't understand their strategy. First they haunt how they can't agree, reject every proposal, and then the dude says at the end of the day they'll find common ground?
They keep saying the deadline for a solution is June 1. So hopefully they'll make it and find common ground.
I expect that the dollar could fall as well, making any purchase even more profitable.