Dow, S&P edge up as data, debt ceiling curb gains
The S&P 500 and the Dow ended with modest gains on Monday after manufacturing data raised concerns about a slowing U.S. economy that could help bring down inflation amid ongoing debt ceiling negotiations, while a rise in Meta shares helped lift the Nasdaq.
The New York Federal Reserve’s “Empire State” index, a gauge of manufacturing activity in New York State on current business conditions, tumbled to a reading of -31.8 in May, against expectations of -3.75.
“This is always tough because we are in a period now where bad news is actually good news from a stocks standpoint and vice versa, but you still get the market reacting when you get a bad number because everybody then begins to worry about a recession,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
“So we want the economy to be weak enough to bring down inflation but not so weak that it causes a recession.”
Analysts cautioned that the barometer is also volatile, lessening its impact.
Also keeping markets subdued was the wrangling in Washington between the White House and Republicans in debt-ceiling talks, with a meeting scheduled for Tuesday, although it was unlikely a deal would be reached then.
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