- US stocks traded mixed Monday, with investors monitoring updates on the latest debt deal talks.
- President Joe Biden and House Speaker Kevin McCarthy are slated to meet Monday for further negotiations.
US stocks traded mixed Monday ahead of debt-ceiling negotiations between President Joe Biden and House Speaker Kevin McCarthy.
On Sunday, Treasury Secretary Janet Yellen reiterated her warning that the government will run out of money to pay its bill as early as June 1, though stocks have seemingly shrugged off risks and ended last week in the green.
In the five days to Friday, the S&P 500 gained 1.65%, the Nasdaq was up 3.04%, and the Dow moved 0.38% higher.
But JPMorgan warned in a Monday note that equities could see a violent re-pricing similar to 2011, when the S&P 500 sold off 17% amid the last debt-ceiling standoff.
"Our base case," the firm's strategists wrote, "remains that the debt ceiling ultimately does get lifted/suspended though the journey to that end could be at the eleventh hour and drive significantly higher market instability than appreciated by the market currently."
Here's where US indexes stood as the market opened 9:30 a.m. on Monday:
- S&P 500: 4,193.59, up 0.04%
- Dow Jones Industrial Average: 33,414.00, down 0.04% (12.63 points)
- Nasdaq Composite: 12,667.38, up 0.07%
Here's what else is going on:
- Apple, Microsoft, and three other stocks are now worth almost 25% of the S&P 500.
- Warren Buffett's Berkshire Hathaway has about $15 billion riding on Japanese stocks that have surged to multidecade highs.
- Micron shares dropped after China banned the US giant's microchips.
- ChatGPT will spark an $800 billion AI arms race between Microsoft, Google, and other tech giants, Wedbush said.
- A US debt default risks depleting financial markets of a safe, liquid asset like the dollar, according to Paul Krugman.
- Morgan Stanley's Mike Wilson said don't be fooled into thinking this year's stock rally is the start of a new bull market.
In commodities, bonds, and crypto:
- Oil prices climbed, with West Texas Intermediate up 0.28% to $71.75 a barrel. Brent crude, the international benchmark, inched higher 0.46% to $75.93 a barrel.
- Gold edged 0.27% lower to $1,976.90 per ounce.
- The 10-year yield stayed flat at 3.69%.
- Bitcoin dipped 0.48% to $26,772.32.