Day Traders Diary

5/23/23

The major averages pulled back once again as ongoing debt ceiling discussions appeared to yield little progress. The Dow Jones Industrial Average finished near the lows down 231 points, or 0.69% at 33,055. The S&P 500 closed down 47 points or 1.12%. The  Nasdaq Composite fell 160 points or 1.26% to  12,560.

Investors have been closely eyeing debt-limit negotiations in Washington, hoping for more certainty as the so-called June 1 X-date expected by Treasury Secretary Janet Yellen fast approaches. Some House Republicans on Tuesday questioned the accuracy of this projected default date.

On Monday, Kevin McCarthy and President Joe Biden met at the White House, in a discussion that the House speaker described as "productive" and "professional," although the hourlong talk concluded without a resolution.

While lawmakers should achieve a resolution to the debt ceiling woes, Aspiriant's Sandi Bragar remains cautious as recession fears persist. Recent history suggests a downturn will likely come when the Federal Reserve completes it hiking cycle, she added.

On the stock front, Apple fell 1.5% after announcing a multibillion-dollar chip production deal with Broadcom. The chip stock gained about 1.2%. Yelp popped 5.7% as an activist investor called for the company to explore a sale.