Investors are keeping a close eye on the markets today as ongoing debt ceiling negotiations fail to make progress and the minutes of the last Federal Reserve meeting are due to be released. The Dow Futures contract is down 115 points, or 0.3%, S&P 500 Futures traded 13 points, or 0.3%, lower and Nasdaq 100 Futures dropped 37 points, or 0.3%.
Treasury Secretary Janet Yellen has said the “X-date”, when the government runs out of money to pay its bills, could fall as soon as June 1. Investors are also becoming wary of the Federal Reserve continuing its hiking cycle, even after Chairman Jerome Powell hinted at a pause in June.
Oil prices rose sharply Wednesday after industry data registered a chunky drop in U.S. inventories, pointing to tighter supplies as the U.S. driving season draws nearer. Gold futures traded 0.2% higher to $1,978.60/oz, while EUR/USD edged 0.1% lower to 1.0755.
Friday sees the release of the April personal consumption expenditure index reading, the Fed’s preferred inflation gauge. Additionally, there are more earnings to digest Wednesday, including from department store Kohl’s, chipmaker Nvidia, cloud computing company Snowflake and clothing retailer American Eagle Outfitters.