Thursday started off as the first solid day of the week, but as the trading session progressed with little to no information on the U.S. debt deal, major equities gave back their gains to finish yet another day in the red. As we draw ever closer to the August 2nd deadline, many analysts have begun to worry that both sides are deadlocked, and with a Republican House and a Democratic Senate, that will make it next to impossible to pass any legislation unless one side gives way to the other. While it seems highly unlikely that the U.S. will default on its debts, it is still a possibility at this point in time, a situation that could put the already beleaguered economy into an even bigger hole.
American markets started the day on a high note only to finish the much closer to the breakeven level as traders digested testimony from Fed Chairman Ben Bernanke. In his report, the Chairman suggested that another round of stimulative measures wasn’t completely out of the question and that more ‘untested’ methods may be used to bring the economic growth rate back up. Utilities were one of the losers on the day while traders continued to push into the basic materials and services sector as strong prices for natural resources and hopes for more easing carried the riskier sectors higher on the day.