Stocks went down due to Debt Ceiling


U.S. stocks retreated Tuesday due to the outlook for corporate earnings and ongoing worries over the U.S. debt ceiling shook investor confidence.

Investors have been torn between two forces: Second-quarter corporate results that have been generally positive and Concerns tied to the continuing battle over the United States’ debt ceiling. Of the S&P 500 companies that have reported their quarterly results so far, 73% have beaten expectations, according to data by Thomson Reuters.

Months of increasingly tense negotiations have failed to bring a deal that can win approval from all of the necessary players — the Republican-led House, Democratic-led Senate and the White House. If Congress doesn’t raise the $14.3 trillion debt limit by next week, Americans could face rising interest rates and a declining dollar, among other problems. But investors continue to call Washington’s bluff, and are optimistic a deal will be reached before the August 2 deadline.

 

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