Stock Markets Dip Midday on May 31, 2023 Ahead of Crucial U.S. Debt Ceiling Vote
On May 31, 2023, U.S. stock markets experienced a midday decline as investors awaited the pivotal House vote on raising the federal debt ceiling, amid concerns of a potential default.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading news teams in delivering impactful coverage of major global events.
Highlights
- Markets fell midday on May 31, 2023, ahead of the critical U.S. debt ceiling vote.
- Advance Auto Parts saw the steepest drop in the S&P 500 after disappointing earnings and reduced guidance.
- Intel shares surged as the chipmaker projected Q2 sales at the top of its forecast range.
U.S. equities declined during midday trading as investors awaited the House of Representatives' vote on increasing the government’s borrowing limit. Treasury Secretary Janet Yellen cautioned that without raising the debt ceiling, the U.S. risks defaulting as early as next week. Leading indexes including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all retreated, while bond yields decreased.
The S&P 500’s decline was largely driven by Advance Auto Parts (AAP), whose stock plummeted following earnings that significantly missed analysts’ estimates, accompanied by lowered guidance and a dividend cut. Competitors AutoZone (AZO) and O’Reilly Automotive (ORLY) also experienced share price drops.
Shares of Hewlett Packard Enterprise (HPE) fell sharply after the company reported profits and sales below expectations. Similarly, HP Inc. (HPQ) shares declined amid weak PC demand. Regional banks, including Comerica (CMA), saw their stock prices fall.
Conversely, Intel (INTC) outperformed within the Dow Jones after announcing that its second-quarter sales are expected at the upper end of its guidance. Gold prices reached a two-week peak, benefiting miners like Newmont Corporation (NEM) and other gold producers. Xylem (XYL) shares rose following an analyst upgrade.
Oil futures declined due to concerns about a potential economic slowdown in China. The U.S. dollar strengthened against the euro and British pound but weakened versus the Japanese yen. Major cryptocurrencies saw price decreases across the board.
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