NEW YORK: Wall Street stocks fell early Wednesday, extending a downward lurch on rising worries about US talks to avert a debt default.
Reports that talks between the White House and congressional Republicans to lift the debt ceiling hit an impasse sent markets decisively lower Tuesday afternoon.
That trend continued early Wednesday.
Wall Street subdued as deadlocked debt ceiling talks stoke default concerns
“Everything is focused on these stupid debt ceiling talks. And I think the market’s getting disappointed that there isn’t an agreement yet,” said LBBW’s Karl Haeling. “It’s gonna go to the last minute probably.”
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.5 percent at 32,893.99.
The broad-based S&P 500 also shed 0.5 percent to 4,123.00, along with the tech-rich Nasdaq Composite Index, which stood at 12,502.01.
Among individual companies, Citigroup rose 2.0 percent as it announced a plan to spin off its Mexican consumer banking unit Banamex in a public offering.
Retailers Abercrombie & Fitch and Kohl’s both surged following better than expected results, with Abercrombie rising more than 20 percent and Kohl’s 10.6 percent.
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