US stocks fall to start June as traders watch debt ceiling bill move through Congress

Advertisement
US stocks fall to start June as traders watch debt ceiling bill move through Congress
An American flag hangs behind traders working on the floor of the New York Stock Exchange (NYSE) on October 11, 2019 in New York City.Drew Angerer/Getty Images
  • US stocks fell on Thursday as investors eyed the debit limit deal's progress.
  • The House passed bipartisan debt limit legislation on Wednesday night.
Advertisement

US stocks fell on Thursday to kick off June as investors watched the debit limit deal move through Congress.

The House passed bipartisan legislation on Wednesday evening, easing concerns of a potential US default. It's now moving to the Senate. President Joe Biden called the outcome "good news for the American people and the American economy."

Traders are also looking ahead to the Federal Reserve's next policy meeting on June 13-14, when central bankers will deliberate over their next move on rates. The Fed has raised borrowing costs 10 straight times since March of 2022 in a bid to curb high inflation.

Philadelphia Fed President Patrick Harker said on Wednesday that he feels inclined to "skip" another interest rate hike.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:

Advertisement

Elsewhere, the crypto market's 2023 rally seems to be cooling as macro uncertainty mounts. Bitcoin notched its first monthly loss of 2023 as traders navigate central bank tightening and stubborn inflation.

"When there is fear sentiment in the market, investors tend to flock to safer assets, such as gold and government bonds," Brigham Santos, COO of blockchain financial services provider Lama, told Insider. "This can lead to a sell-off in riskier assets, including bitcoin. In addition, central bank tightening can also lead to a decline in bitcoin prices."

Santos added: "This could work as a domino effect by generating higher interest rates, which can make it harder to borrow money to invest back [into] bitcoin."

Here's what else is going on:

In commodities, bonds, and crypto:

Advertisement
{{}}