US stocks: Dow falls, Nasdaq rises as debt ceiling talks loom

NEW YORK: Wall Street stocks were mixed at the end of Monday’s session ahead of White House negotiations with Republican leaders to avert a US debt default.
After a weekend of near deadlock, President Joe Biden arrived back in Washington late Sunday, ahead of the US Treasury’s June 1 deadline for Congress to authorize more borrowing.
Talks were expected to resume Monday night.
“The base case is still for a debt deal to be reached, but the risk of a default is still on the table,” said market Oanda Edward Moya, adding that such an outcome would mean “an immediate plunge towards bear market territory.”
The Dow Jones Industrial Average finished down 0.4 percent at 33,286.58.
The broad-based S&P 500 was flat at 4,192.66, while the tech-rich Nasdaq Composite Index gained 0.5 percent to 12,720.78.
Amid the debt talks, US central bank policy remained in focus.
Minneapolis Federal Reserve President Neel Kashkari told CNBC that it is a “close call” on whether the central bank should again lift interest rates in June, but added that such a move would not guarantee an end to the Fed’s tightening cycle.
Chevron fell 1.8 percent after announcing it will acquire PDC Energy for $6.3 billion, bolstering its holdings in US properties in Colorado and the Permian Basin, an area in Texas and New Mexico.
PDC gained 7.2 percent.
JetBlue dropped 2.1 percent and American Airlines lost 3.0 percent after a federal judge ruled Friday that the companies’ alliance for service in the Northeastern region must end due to competition concerns.
Regional banks, which endured deep losses earlier in the spring, had a winning session. Comerica rose 3.5 percent, KeyCorp 4.6 percent and Western Alliance Bancorporation 10.3 percent.

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