Wall Street Fears Debt Negotiation Deadlock

Wall Street investors are still worried over the debt ceiling after attempts to strike a deal between the White House and the United States (US) Congress failed to agree to raise the debt ceiling.

The deadline to pay off debts is only nine days away with US borrowing limit of US$14.3 trillion. The White House and Republican leaders reassured global markets that the US would not allow a debt default but positive developments have yet to transpire.

wall street
The corner of Wall Street and Broadway, showing the limestone facade of w:One Wall Street in the background.

Photo Credit: WikiMedia Commons

Investors are keen in observing what is going to happen in the following days especially now that euro zone leaders will again bailout Greece for its debts. Investors worry that debt default would increase more uncertainty considering the events in Europe and growth expectations are weakening.

Also, corporate earnings are suggesting that markets will experience additional strains despite relatively good results. A 3.8 percent of the S&P 500 has outpaced the consensus estimates while only 7 percent have missed estimates, according to data from Morgan Stanley. There was a 6 percent rally by S&P500 as corporate earnings reporting runs up, but earnings from industrial giants weighed on the Dow Jones last Friday.

Market skepticism looms as share prices of those that fell short of the estimates are taking a beating. The market is apparently punishing those who have missed the estimates more than it is rewarding the beats. Companies such a Pepsi and Whirlpool are worried that a sluggish market will send their shares lower. Market experts are forecasting that this trend will continue.

Hot this week

Did David Wineland and Serge Haroche Steal Idea For The Nobel Physics Prize?

Dr. Omerbashich says the Royal Swedish Academy is a Crime Scene and he has the proof that Nobel laureates stole his discovery.

New Approaches to Disaster Relief Challenges

Disaster relief has always been a challenge. NASA, Google,...

3 Legitimate Money Making Methods to Supplement Your Income

In a perfect world, when your landlord raises your...

2016 Predictions by World Renowned Medium and Psychic Lindy Baker

World renowned medium and psychic Lindy Baker is interviewed by The Hollywood Sentinel, discussing psychic power, the spirit world, life after death, areas of concern in 2016, and much more.

Digital Coupon Customers Spending More Than Double At Stores

A new study shows that customers who use digital coupons go shopping more for groceries and other household goods more often and spend more on their shopping trips.

How Do You Prove Medical Malpractice?

No one expects to walk away from a doctor’s...

Israel, A People Who Rose Like A Lion

Israel, a people who rose like a lion, like a lion they will show off. ~ The Book of Numbers, Chapter 23 Verse 24.

TigerData and Listo Join Omri Hurwitz’s Immense Portfolio

In a move that further solidifies Omri Hurwitz Media...

From Timescale to TigerData: Signals a Bold Future for PostgreSQL

TigerData, the new name for Timescale, has officially unveiled...

An Interview with Kevin Vuong

Kevin Vuong was elected as the Member of Parliament...

Humans Company: Debt Obligations, Legal Disputes, and Ownership Structure

The virtual mobile operator and fintech company Humans quickly found itself...

Related Articles

Popular Categories