All three indices closed lower yesterday, amid fears of a US default. The Dow closed 1.01% lower, the S&P lost .64% and the Nasdaq slipped .18%.
As we approach the early June deadline announced by Secretary of the Treasury Janet Yellen, investors are getting scared and ouflows are increasing.
Although the deadline annnounced by the Treasury is early June, most predict the actual deadline is around mid to late July. The deadline does not really matter as the sides are probably going to reach an agreement at the last minute anyway.
However, even if the US doesn't default on its debt the default risk could hit the equity markets, as there will be massive outflows.
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