U.S. stocks are falling as debt ceiling talks drag on

Investing.com — U.S. stocks were falling as the debt ceiling talks dragged on with no solution in sight.

At 10:17 ET (14:17 GMT), the was down 203 points or 0.6%, while the was down 0.7% and the was down 0.8%.

Investors have been hoping for a resolution to the debt ceiling standoff in Washington, with an early June deadline just days away. If Congress doesn’t raise or suspend the ceiling, the government risks the possibility of defaulting on its obligations, something economists and Biden administration officials have warned could cause chaos in financial markets.

Democrats and Republicans are trying to hammer out details on spending levels as part of reaching an agreement, though the sides still appear far apart as of Wednesday morning.

At the same time, investors are looking to the release of the Federal Reserve’s from its last policy session, when it another quarter of a percentage point. Since then, officials have indicated a pause may be in order in June as they assess the progress of their actions so far to cool inflation.

One key data input will be Friday’s report on , a measure of inflation closely watched by the Fed as it makes its monetary policy.

Uncertainty is raising the level of volatility in markets, with the , or VIX, up 10.9% on Wednesday, to just over 20.

Citigroup Inc (NYSE:) stock fell 3% after the bank said it would spin off its operations in Mexico in an initial public offering after trying to find a buyer for it.

Kohl’s Corp (NYSE:) shares jumped 10% after the department store operator reported better-than-expected , including a surprise profit.

Oil was rising. were up 1.6% to $74.08 a barrel, while were up 1.5% to $78.02 a barrel. were down 0.2% to $1,970.