U.S. Stocks Tumble As Debt Cap Deadline Looms


New York (AFP) – U.S. stocks tumbled in early trade Monday as the government had days to resolve the political deadlock over the budget and debt before being forced to default on its bills.

After a weekend that saw no progress in talks between the White House and Republicans, an hour into trade, the Dow Jones Industrial Average was down 71.70 points (0.47 percent) at 15,165.41.

The broader S&P 500 lost 7.80 (0.46 percent) to 1,695.40, and the Nasdaq Composite gave up 13.15 (0.35 percent) to 3,778.72.

Investors still showed tentative hopes that a deal would be reached by Thursday, the day the U.S. Treasury says it will run out of adequate cash to pay its obligations, including debt service.

Global finance leaders have repeatedly warned that a U.S. debt default would generate unfathomable turmoil through the global financial system.

“It would mean massive disruption the world over,” International Monetary Fund chief Christine Lagarde said Sunday. “And we would be at risk of tipping, yet again, into recession.”

Netflix surged nearly three percent after a report that it was negotiating to place a Netflix app on the set-top boxes of several cable providers.

Chip maker Micron Technology lost another 2.6 percent after Friday’s sharp fall as investors took profits following a sharp runup.

Facebook shed nearly two percent, while retail giant Walmart fell 1.2 percent.

The bond market remained quiet despite the worries about the U.S. budget and debt impasse.

The yield on the 10-year Treasury was marginally higher at 2.69 percent, while the 30-year was at 3.75 percent.

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

History And Terror In The Skies Over Israel

Anti-missile system operating against Iranian drones,seen near Ashkelon, Israel on April 13, 2024

Photo by Amir Cohen/REUTERS

Iran has launched a swarm of missile and drone strikes on Israel from Iranian territory, marking a significant military escalation between the two nations. Israel and Iran have been engaged in a so-called shadow war for decades, with Iranian proxies like Hezbollah rocketing Israel from Lebanon and Syria, and Israel retaliating by launching air strikes on Hezbollah missile sites. Israel has also launched strikes on Iranian targets in other countries, most recently an airstrike on part of the Iranian embassy in Damascus, Syria, which killed several top Iranian “advisers” to its military, including Mohammad Reza Zahedi, a senior officer in Iran’s Quds Force, an espionage and paramilitary arm of Iran’s army.

Keep reading...Show less
Whose Votes Does Biden Need To Win -- Hard Left Or Haley Republicans?

President Joe Biden

How A Dire Shortage Of Poll Workers Threatens Our Democracy

Barack Obama got it right. He refused to be held captive to his party's left wing. He adopted a strenuous policy of border enforcement, even as some Latino activists threatened to withhold their support for him. He had tense relations with Israeli leader Benjamin Netanyahu, but when anti-Israel protesters interrupted a Biden fundraiser over the Gaza conflict, Obama reprimanded them: "Here's the thing, you can't just talk and not listen." And the hall broke into applause.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}