US stocks fall as Treasury Secretary Yellen sounds new warning bell over debt ceiling deadline
- US stocks traded lower on Wednesday as the US Treasury warned it will soon run out of money.
- Treasury Secretary Janet Yellen told Congress on Tuesday the government will run out of money on December 15.
- A previous debt ceiling showdown in early October helped add to investor concerns amid the September sell-off.
US stocks traded lower on Wednesday as the US Treasury warned Congress that it will soon run out of money unless a debt ceiling deal is struck.
Treasury Secretary Janet Yellen told congress that she estimates the government will run out of money on December 15, an almost two-week extension from the previous estimated deadline of December 3.
The deadline will likely rise to top of mind for investors in the coming weeks as Democrats scramble to reach a deal and avert a government shutdown and default. An early October debt ceiling showdown only added to investor concerns amid a September sell-off in stocks.
Congress ultimately agreed to a short-term debt ceiling extension on a bi-partisan basis, but Republicans have signaled they will not vote to raise the debt ceiling this time around, putting pressure on Democrats to raise the debt ceiling on their own.
Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:
- S&P 500: 4,688.77, down 0.26%
- Dow Jones Industrial Average: 35,931.05, down 0.58% (211.17 points)
- Nasdaq Composite: 15,921.57, down 0.33%
The mainstreaming of crypto continues, with the LA Staples Center set to change its name to Crypto.com in a $700 million deal.
The price of bitcoin stumbled in recent days, and technical analyst Katie Stockton of Fairlead Strategies sees a big test at the $58,000 support level. Below that level, and the popular cryptocurrency could drop to $53,000, according to Stockton.
Elon Musk continued to sell Tesla shares, with a recent filing showing the CEO sold another $973 million worth of the company as he pays taxes on profitable options.
Rising prices are being felt in the UK, with a reported 4.2% surge in inflation last month. That represents the highest level in 10 years and bolstering that case for an interest rate hike from the Bank of England.
Rivian fell as much as 18% on Wednesday, marking the electric truck maker's first down day since it went public at $78 per share last week.
Gold jumped as much as 0.68% to $1,866.80 per ounce.
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