Morgans AM: Wednesday, 17 May 2023

US equity markets retreated as investors focussed on debt ceiling talks between President Joe Biden and House Speaker Kevin McCarthy, which concluded shortly before market close - Dow fell -336-points or -1.01%, falling back into negative territory for the year-to-date for the first time since 4 May and closing below its 50-day average for the first time since 30 March. The broader S&P500 lost -0.64%, with Real Estate (down -2.61%), Energy (-2.54%) and Utilities (-2.30%) all dropping over >2% to lead nine of the eleven primary sectors lower. Communication Services (up +0.59%) and Information Technology (+0.16%) were the only primary sectors to advance. The technology-centric Nasdaq slipped -0.18%. The small capitalisation Russell 2000 shed -1.44%.