On Wednesday, U.S. stock indexes were set to open lower as talks between the White House and Republican representatives over raising the debt ceiling failed to make a breakthrough. Shorter-dated Treasury yields continued to rise, with yields on the 1-month bond hitting another record high at 5.8920%, as worries about a possible government debt default rise.
Investors await minutes from the Federal Reserve’s May 2-3 meeting, due later in the day, to assess the central bank’s interest-rate path. Shares of Meta Platforms Inc, Agilent Technologies Inc, Nvidia Corp, PacWest Bancorp, Kohl’s Corp, Urban Outfitters Inc, VF Corp, and Abercrombie & Fitch Co were all trading lower or higher premarket, depending on their respective earnings reports.
The lack of progress in talks to raise the $31.4 trillion borrowing limit ahead of the June 1 deadline has weighed on Wall Street, with its benchmark indexes ending the previous session sharply lower. Investors will be closely watching the Fed minutes and earnings reports for further direction.