The Dow Jones Industrials moved even deeper leading up to lunch hour Wednesday dropping 216.62 points to 32,838.89
The S&P 500 waned 30.75 points to 4,114.83.
The NASDAQ tumbled 103.14 points to 12,457.10.
Negotiators from both sides were expected to meet again Wednesday morning, with House Speaker Kevin McCarthy slated to hold a press conference at 11:45 a.m. ET. On Monday, McCarthy had called a discussion with President Joe Biden “productive,” although there were few signs of progress made in negotiations Tuesday.
Treasury Secretary Janet Yellen previously warned lawmakers that a potential default in early June is “highly likely.” She noted Wednesday that she already sees “some stress in financial markets” as concerns mount that the U.S. could see its first default in history.
Even as talks appear at a standstill, many on Wall Street seem hopeful that both sides can reach an agreement before the so-called X-date.
The tail end of earnings season stretched on with Kohl’s jumping more than 7%, and Abercrombie & Fitch popping 27%, after posting surprise profits. Semiconductor giant Nvidia posts results Wednesday after the bell.
Prices for the 10-year Treasury were slightly lower, raising yields to 3.71% from Tuesday’s 3.70%. Treasury prices and yields move in opposite directions.
Oil prices ballooned $1.43 to $74.34 U.S. a barrel.
Gold prices were down $2.70 to $1,971.80 U.S. an ounce.