Wall St falls as labor data spurs rate hike jitters before debt ceiling vote
US job openings unexpectedly rise in April
Advance Auto Parts slumps after forecast cut
Nvidia down after Tuesday's record high
Indexes down: Dow 0.35%, S&P 500 0.42%, Nasdaq 0.37%
Adds comment in paragraphs 4-7, change in futures outlook on rates in paragraph 9, comments by Fed officials in paragraph 10
By Herbert Lash and Shreyashi Sanyal
May 31 (Reuters) - U.S. stocks fell onWednesday as a deal to raise the federal debtceiling headed towarda crucial vote in Congress, while unexpectedly strong labor market data initially raised the likelihood of the Federal Reserve hiking interest rates again.
The House of Representatives is expected to vote in the evening on a bill to lift the $31.4 trillion debt limit, a critical step to avoid a destabilizing default that could come early next week without congressional action.
House passage would send the bill to the Senate, where debate could stretch to the weekend, just beforeJune 5 when the government may start to run out of money. Most analysts foresee the bill's approval.
U.S. President Joe Biden said he expected the debt ceiling bill on his desk by June 5.
"The bond market liked that there was some fiscal discipline and the equity market liked that it's not going to hurt growth," said Brad Conger, deputy chief investment officer at Hirtle Callaghan & Co in Conshohocken, Pennsylvania.
"I don't think we could have asked for a better outcome."
But equity valuations are stretched considering interest rates are high, the economy is slowing and inflation needs to decline further, Conger said.
"It's going to be a struggle if inflation is not perceived to be ebbing, which is where we are," he said.
The Labor Department's Job Openings and Labor Turnover Survey, or the JOLTS report, showed U.S. job openings unexpectedly rose in April, pointing to persistent strength in a labor market that suggests pressure on both wages and inflation.
Futures traders raised to 70% the probability of a 25 basis points hike at the end of the Fed's June 13-14 policy meeting, but that likelihood fell to about 25% after comments by Fed officials who are leaning to what some call a "hawkish pause." FEDWATCH
Fed Governor and vice chair nominee Philip Jefferson said skipping a rate hike in two weeks would provide policymakers time to see more data before making a decision. Philadelphia Fed President Patrick Harker also said on Wednesday that for now he is inclined to support a "skip" in rate hikes.
The Labor Department's closely watched May unemployment report, due on Friday, could be decisive in whether a rate hike is in the cards or not.
The major indices pared losses after the comments by Fed officials.
The Dow Jones Industrial Average .DJI fell 128.69 points, or 0.39%, to 32,914.09; the S&P 500 .SPX lost 18.76 points, or 0.45%, to 4,186.76; and the Nasdaq Composite .IXIC dropped 47.41 points, or 0.36%, to 12,970.02.
Technology-led gains have put the Nasdaq on track for its best performance in May since 2020, up 5.7%. The S&P 500 was set to end the month flat, while the Dow shed 3.8%.
The Federal Deposit Insurance Corporation said U.S. banks' total deposits declined by a record 2.5% in the first quarter after two large bank failures.
The S&P 500 financial sector index .SPSY fell1.4%, while banks .SPXBK dropped2.4%.
Advance Auto Parts Inc AAP.N plunged 34.3%, falling the most on the S&P 500, after the auto parts retailer cut its full-year forecasts.
Shares of other autoparts companies including Genuine Parts CoGPC.N, Autozone AZO.N and O'Reily Automotive ORLY.O fellbetween 4.2% and 5.5%.
Hewlett Packard Enterprise Co HPE.N slipped 6.1% after missingWall Street estimates for second-quarter revenue.
Nvidia Corp's NVDA.O shares fell 3.8% a day after hitting arecord high as itbriefly crossed$1 trillion in marketvalue, banking on the AI boom.
Declining issues outnumbered advancers on the NYSE by a 1.51-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored decliners.
The S&P 500 posted three new 52-week highs and 22 new lows; the Nasdaq Composite recorded 28 new highs and 155 new lows.
S&P 500 sector performance for May https://tmsnrt.rs/42hpcW3
Reporting by Shreyashi Sanyal and Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta, Maju Samuel and Richard Chang
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.