Dow Futures Slide As Boehner Rules Out Clean Debt Deal

Stock index futures suggest that the Dow Jones and S&P 500 may fall sharply when markets open, as investor fear of a US default grows.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

LONDON — Stock index futures at 7am ET indicated the Dow Jones Industrial Average (DJINDICES: ^DJI) may open down by 0.86% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open 0.95% lower, as investors prepare for a week of tortuous political negotiations over the US debt ceiling, following Speaker John Boehner’s statement that he will be unable to pass a deal to raise the debt ceiling without some kind of concessions from the Obama administration, something President Obama has previously ruled out.

CNN’s Fear & Greed Index remains in the fear zone, and is expected to open at 35 this morning, after closing at 28 on Friday.

European markets dipped this morning, as uncertainty over US debt ceiling negotiations continued to dominate sentiment.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

In Europe, EADS, which manufacturers Airbus airliners, was up by 1.8% on news that it is expected to receive a substantial order from Japan Airlines, one of the last remaining Boeing-dominated operators.

London-listed luxury goods manufacturer Burberry Group dipped after the firm’s CEO said that the current dip in Chinese sales may persist longer than expected. At 7am ET, the FTSE 100 was down 0.90%, the DAX was down 1.12%, and the CAC 40 was down 1.00%.

US investors will eye today’s August consumer credit report for signs of a strengthening recovery, but the report, which is due at 3pm ET, is likely to be overshadowed by debt ceiling negotiations, as the 17 October deadline — after which the US may default on its debts — approaches fast.

Today also sees the start of earnings season.

Traditional bellwether Alcoa does not report until tomorrow, but despite being demoted from the Dow Jones last month, the aluminium manufacturer is still likely to be seen as a key indicator of global economic activity. Among a handful of companies due to report earnings today is homebuilder and mortgage lender NVR, whose stock price has fallen by 12% over the last six months.

Other stocks that may be actively traded include Tesla. The electric-car maker had a volatile week last week after one of its Model S cars caught fire, but after dropping 5%, it closed up by 4.4% on Friday, to end the week down by just 4%.

This AI stock is becoming a digital juggernaut in a £ 12.5 billion market!

🤖 Curious about the next big player in AI? 🤖

Our leading industry analysts have uncovered a trailblazing content platform that's revolutionising the industry with its unparalleled generative AI technology, setting new standards in creativity and efficiency.

Care for a sneak peek?

Trusted by global giants like Amazon, Disney, and Netflix, this innovative company is not just transforming digital media with AI-generated 3D content but is also capturing a significant share of a £12.7 billion market!

With a remarkable 62% gross margin, indicating exceptional profitability and operational efficiency, this company's growth trajectory positions it as a must-watch for savvy investors.

Best of all, we're offering exclusive access to the name of this game-changing stock, absolutely free!

Discover your free AI stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Roland does not own shares in any of the companies mentioned in this article. 

More on Investing Articles

Investing Articles

3 shares I’ve bought in the 2025 stock market sell-off

The stock market has experienced a lot of turbulence in recent weeks. Edward Sheldon has been taking advantage and buying…

Read more »

Investing Articles

Investors considering HSBC shares could aim for £8,453 a year in passive income from just £5 a day!

A relatively small daily investment in HSBC shares over several years can produce an extraordinary level of annual passive income…

Read more »

Investing Articles

The Rolls-Royce share price has fallen! Is this the moment investors have been waiting for?

Even the Rolls-Royce share price can't escape current stock market volatility, falling slightly over the last week. Should investors consider…

Read more »

Modern suburban family houses with car on driveway
Investing Articles

Down 59% from its 12-month highs, is this FTSE 250 stock too cheap to ignore?

Shares in FTSE 250 housebuilder Vistry are almost certainly too cheap to ignore. But are they discounted enough to offset…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

As the S&P 500 struggles to recover, here’s what Warren Buffett’s doing

The S&P 500 is fighting to regain its February highs amid ongoing trade tariff uncertainty. Our writer looks to the…

Read more »

Investing Articles

When will Lloyds shares hit £1?

Lloyds shares have surged over the past 12 months, but where will they go next? Dr James Fox thinks there’s…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Stock-market crash: the meltdown of the Magnificent 7

Just before Christmas, these Magnificent Seven stocks were riding high. But after the worst quarter for US stocks since autumn…

Read more »

Investing Articles

Wow! IAG shares are undervalued by 47%, according to analysts

IAG shares have surged over the past 18 months, but analysts are pointing to more growth. Dr James Fox takes…

Read more »