U.S. stock futures were little changed Tuesday evening as investors closely watched debt-ceiling talks.
Futures tied to the Dow Jones Industrial Average rose 28 points, or 0.08%. S&P 500 futures rose 0.1%, while Nasdaq 100 futures rose 0.08%.
All three major stock indexes fell in regular trading on Tuesday.this S&P 500 Index fell 1.12%, while Nasdaq Composite Index and Dow Jones Industrial Average They fell by 1.26% and 0.69%, respectively.
Treasury Secretary Janet Yellen previously warned lawmakers that a potential default in early June was “very likely.” House Speaker Kevin McCarthy said he had “productive” discussions with President Joe Biden on Monday. Still, there were few signs of progress in Tuesday’s talks.
However, Bill Merz, head of capital markets research at Bank of America Wealth Management, said markets could be volatile even if officials in Washington raise the debt ceiling. That’s because the Treasury will need to issue a lot of debt to replenish its general account, he said.
“The impact could be to remove liquidity from broader capital markets,” Merz said. “Especially recently, (that) has really overlapped or correlated with the S&P 500’s overall equity performance,” he continued
“Especially recently, (that) has really overlapped or correlated with the overall equity performance of the S&P 500,” he continued.
On the economic front, investors will focus on minutes from the Federal Reserve’s early May meeting. They will be released on Wednesday afternoon.
Investors will also be watching for more earnings announcements on Wednesday. Clothing retailer American Eagle Outfitters and semiconductor maker Nvidia are due to report after the close on Wednesday.