After hitting all time highs earlier in the month, stock markets have taken a negative turn as investors worry about developments in Washington.
U.S. stock futures were sliding lower ahead of the opening bell and most global stock indexes were in the red.
There are concerns that Congress will be unable to adequately deal with the country’s debt ceiling woes, which means the government risks defaulting on its debt next month. Treasury Secretary Jack Lew warned Tuesday that Wall Street should take the looming debt limit more seriously.
Investors also considered the possibility that the U.S. government might shut down on October 1st, which could hit economic growth.
On the economic front, the Census Bureau will release reports on durable goods orders at 8:30 a.m. ET, and on new home sales at 10:00.
In corporate news, AutoZone is set to release quarterly results before the opening bell, while Bed Bath & Beyond is up in the afternoon.
U.S. stocks fell Tuesday. Both the Dow Jones Industrial Average and S&P 500 index have now suffered four straight days of losses.
Global stocks also lost ground. Asian markets ended Tuesday’s session mostly lower, with Japan’s Nikkei index declining 0.8%. The Shanghai Composite also weakened, but the Hang Seng in Hong Kong bucked the trend to close slightly higher.
European markets were down roughly 0.2% in morning trading.
