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Investing.com — U.S. stocks are seen opening marginally lower Monday, as investors concentrate on the resumption of key debt ceiling negotiations as comments from Federal Reserve officials.
At 07:00 ET (11:00 GMT), the contract was down 15 points or 0.1%, traded 4 points or 0.1% lower, and dropped 17 points or 0.1%.
U.S. President Joe Biden and House Republican Speaker Kevin McCarthy are set to meet later Monday to resume talks after Republican negotiators surprisingly walked out of negotiations on Friday.
Hopes had been growing last week that the two sides could agree to a deal to raise the $31.4 trillion U.S. debt limit before a June 1 deadline after which U.S. Treasury Secretary warned that the federal government will struggle to pay its debts.
A U.S. default would likely cause chaos in financial markets, and probably push the global economy into recession.
A number of central bank officials are due to speak later in the session, and investors will study comments from FOMC members , and for clues of future interest rate action by the .
A series of regional presidents raised market expectations of another hike at the June meeting by stressing last week that was not retreating as quickly as they would have wanted.
However, Fed Chairman created more uncertainty by hinting at a pause in the U.S. central bank’s rate-hiking cycle on Friday, saying tighter credit conditions mean that “our policy rate may not need to rise as much as it would have otherwise to achieve our goals.”
In the corporate sector, Micron Technology (NASDAQ:) stock dropped sharply in premarket trading after China prohibited major local infrastructure operators from purchasing chips made by the U.S. semiconductor firm.
Meta Platforms (NASDAQ:) stock also retreated after the European Union privacy regulators fined the tech giant $1.3 billion for sending user information to the U.S.
Oil prices stabilized Monday amid caution over the ongoing U.S. debt ceiling talks.
By 07:00 ET, futures traded 0.1% higher at $71.71 a barrel, while the contract rose 0.1% to $75.61.
Both contracts rose around 2% last week, ending four straight weeks of heavy declines on concerns of slowing growth in China, the world’s largest oil importer, as well as the potential economic repercussions of a U.S. default.
Additionally, fell 0.1% to $1,980.15/oz, while traded 0.1% higher at 1.0822.
This story originally appeared on Investing
