US stocks fall as debt ceiling debate drags on and minutes show Fed split on more rate hikes

• US stocks fell on Wednesday as investors weighed a split among Fed members against a split among lawmakers
• Minutes from the Fed showed Fed members are split on whether to hike interest rates in June or pause further rate hikes.
• Meanwhile, Congress is still at an impasse when it comes to raising the debt ceiling to avoid a US default.

US stocks fell on Wednesday as investors weighed a divided Federal Reserve against a divided Congress, both of which have big implications for markets.

Minutes from the Fed's most recent meeting in early May showed that Fed presidents are split on whether to hike interest rates again at its upcoming June policy meeting, or signal a pause in further interest rate hikes and wait for the dust to settle following the regional banking crisis earlier in the spring.

Meanwhile, investors are growing increasingly concerned about a potential US debt default as President Joe Biden and House Speaker Kevin McCarthy still seem to be at an impasse when it comes to raising the country's borrowing limit.

While both leaders have repeatedly said a debt default will not happen, both sides remain stuck on what type of concessions to give that would get a deal across the finish line.

Finally, Treasury Secretary Janet Yellen reiterated to Congress on Wednesday that the US government could run out of money to pay its bills by as early as June 1, leaving just a week left for lawmakers to strike a deal.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

• S&P 500: 4,115.33, down 0.73%
• Dow Jones Industrial Average: 32,800.38, down 0.77% (255.13 points)
• Nasdaq Composite: 12,484.16, down 0.61%

Here's what else is happening this morning:

• The slump in house prices around the world might be nearly over despite central banks' rapid tightening campaigns pushing up mortgage rates, according to a recent note from Goldman Sachs.
• Elon Musk offered a word of warning about dogecoin Tuesday, saying that investors shouldn't pour all their wealth into the meme token.
• US regional banks are "certainly" going to face a credit crunch - and that will erode growth in the world's largest economy, according to "Dr. Doom" economist Nouriel Roubini.
• Goldman Sachs CEO David Solomon warned yet again that US inflation will be prove stickier than expected, and that could lead to more interest rate hikes from the Federal Reserve.
• Market veteran Ed Yardeni said chances are increasing that the US economy will stick a soft landing as consumers remain resilient and continue to spend excess savings.
• The hype in artificial intelligence is real, but that has yet to spill over into the stock market as retail investors fail to buy in, according to DataTrek Research.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil jumped 1.34% to $73.89 per barrel. Brent crude, oil's international benchmark, rose 1.54% to $78.02.
• Gold fell 0.57% to $1,963.20 per ounce.
• The yield on the 10-year Treasury rose 3 basis points to 3.73%.
• Bitcoin dropped 3.57% to $26,252, while ether fell 3.33% to $1,792.