Stock market today: live updates

U.S. stock futures fell slightly on Wednesday as investors scrutinize debt ceiling negotiations.

Futures linked to the Dow Jones Industrial Average fell by 61 points, or 0.2%. S&P 500 futures fell by 0.2%, and Nasdaq-100 futures fell 0.1%.

Treasury Secretary Janet Yellen previously warned lawmakers that a possible default in early June is “highly likely”. House Speaker Kevin McCarthy said Monday he had a “productive” conversation with President Joe Biden. Nevertheless, there were few indicators of progress in the negotiations on Tuesday.

However, even if Washington officials raised the debt ceiling, markets could be in turmoil, according to Bill Merz, head of capital market research at US Bank Wealth Management. That’s because the Treasury will have to issue a lot of debt for its general account, he said.

“The impact of that is likely to drain liquidity from broader capital markets,” Merz said. “Especially lately [that] really overlapped or correlated with S&P 500 in overall stock performance,” he continued.

“Especially lately [that] really overlapped or correlated with the S&P 500 in overall stock performance,” Merz said.

On the economic front, investors will be looking forward to the minutes of the Federal Reserve meeting earlier in May. They will be released on Wednesday afternoon.

Investors will also be on the lookout for more earnings announcements. Clothing retailer American Eagle Outfitters and semiconductor giant Nvidia will post their results Wednesday after the bell.

The three main averages fell over the course of Tuesday. The S&P 500lost 1.12%, while the Nasdaq composite and the Dow Jones Industrial Average decreased by 1.26% and 0.69% respectively.