Stock market today: Live updates – HiGood

Stocks fell Wednesday as U.S. lawmakers struggled to reach a deal on the country’s debt ceiling, heightening worries of a potential default.

The Dow Jones Industrial Average fell to its session lows in late-morning trading and was last down 214 points, or 0.65%. The S&P 500 and the Nasdaq Composite slid about 0.7% each.

House Speaker Kevin McCarthy said late morning in a press conference that negotiators remain at odds on spending caps, and blamed the Democrats for coming to the table so late in the process. McCarthy also said that he believes the negotiating teams could make progress Wednesday.

“I just think it’s common sense. It’s reasonable and it’s rational that we spend less next year then we spend this year. Every household would do this,” he said.

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.

The market remains in “pullback mode” due to a combination of overbought conditions and elevated fears of an unfavorable debt ceiling outcome as June 1 draws closer, said Adam Sarhan, CEO of 50 Park Investments.

“When fear takes over, investors tend to sell first and ask questions second — and that’s what we could be seeing,” he said.

On the economic front, investors will be watching for the minutes from the Federal Reserve’s meeting earlier in May. They will be released Wednesday afternoon. 

The tail end of earnings season stretched on with Kohl’s and Abercrombie & Fitch popped more than 7% and 27%, respectively, after posting surprise profits. Semiconductor giant Nvidia posts results Wednesday after the bell.