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The US stock market finished session lower on Wednesday, 31 May 2023, as investors kept an eye on the federal debt ceiling debate in Washington in the final trading day of May and avoid potentially disastrous default. The debt deal, which was reached over the weekend by President Joe Biden and House Speaker Kevin McCarthy, cleared a major test Tuesday night after advancing to the House floor following a 7-6 vote in the House Rules Committee. The floor vote is expected to take place Wednesday evening. Investors were also discouraged by slowing factory activity in China, as well as unexpectedly strong preliminary jobs data in the US. Job openings. At the close of trade, the Dow Jones Industrial Average index declined 134.51 points, or 0.41%, to 32,908.27. The S&P500 index dropped 26.69 points, or 0.61%, to 4,179.83. The tech-heavy Nasdaq Composite Index decreased by 82.14 points, or 0.63%, to 12,935. For the month May, the Nasdaq Composite was 5.8% higher, helped by a rally in artificial intelligence-related stocks and other technology names. The S&P 500 added nearly 0.3%. The Dow fell almost 3.5%. Total 7 of 11 sectors ended lower along with S&P500 index. Utilities was top performing sector, rising 0.96%, followed by healthcare (up 0.85%). Energy was bottom performing sector, falling 1.88%, followed by industrials sector (down 1.4%), financials (down 1.14%), materials (down 1.12%), and information technology (down 1.09%) sectors. ECONOMIC NEWS: Data released by the Labor Department showed job openings rose to 10.1 million in April from a revised 9.7 million in March. Economic Activity Little Changed Overall In April And May, Says Fed's Beige Book- Fed's beige book reveals that economic activity was little changed overall in April and early May. Four Districts reported small increases in activity, six no change, and two slight to moderate declines. Expectations for future growth deteriorated a little, though contacts still largely expected a further expansion in activity. Demand for transportation services was down, especially in trucking, where contacts reported there was a freight recession. Residential real estate activity picked up in most Districts despite continued low inventories of homes for sale. Financial conditions were stable or somewhat tighter in most Districts. Contacts in several Districts noted a rise in consumer loan delinquencies, which were returning closer to pre-pandemic levels. High inflation and the end of Covid-19 benefits continued to stress the budgets of low- and moderate-income households, driving increased demand for social services, including food and housing. On labor market, the beige book stated that employment increased in most Districts, though at a slower pace than in previous reports. Overall, the labor market continued to be strong, with contacts reporting difficulty finding workers across a wide range of skill levels and industries. Powered by Capital Market - Live News
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