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Dow Declines On Friday As GOP Negotiators Call Off Debt Ceiling Negotiations: Constant Updates

Stocks dropped on Friday as GOP negotiators stopped talks on raising the debt ceiling, raising doubts about when an agreement will be struck.

The decline in the Dow Jones Industrial Average was 82 points, or 0.25%. While the Nasdaq Composite fell 0.29%, the S&P 500 traded 0.1% lower.

These actions follow GOP negotiators’ exit from a debt ceiling conference on Friday, which was reportedly caused by Rep. Garret Graves’ assertion that the White House team is being “unreasonable,” according to NBC News. We won’t be talking to ourselves while we’re here, Graves declared.

The Federal Reserve Chairman Jerome Powell’s comment that interest rates would not need to rise as much as anticipated to control inflation, however, helped to contain Friday’s losses.

The markets had a fairly favorable week, and they were trading better in the early hours of today’s trading day, largely as a result of a more positive or constructive feeling around the debt ceiling negotiations. And it encountered a minor hiccup [today], when the talks came to a standstill, according to Art Hogan of B. Riley Financial.

“That’s not the end, in my opinion. But I do believe that there will be some selling going into the weekend if there is any doubt over the debt ceiling, Hogan added.

The major averages were still on track to increase for the week. The S&P 500 is up 1.7% so far this week. Since March, that would be the largest one-week increase. While all is going on, the Nasdaq Composite is up 3.1% for the week. Additionally, that would mark the performance’s best week since March. Dow Jones is up 0.4%.

A significant portion of those gains occurred on Thursday as traders increased their bets that a U.S. debt ceiling agreement may be achieved. A potential agreement might be reached as soon as next week, according to remarks made by House Speaker Kevin McCarthy on Thursday.

Source (CNBC)

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