US stocks drop as China's economy continues to weaken while the US debt ceiling deal heads for House vote

President Joe Biden.AP Photo/Carolyn Kaster

  • US stocks fell Wednesday as Chinese manufacturing data showed further weakness.

  • China’s services sector also cooled off, further deflating hopes of a rebound.

  • In Washington, the House will vote on the debt ceiling deal Wednesday evening.

The final trading day of the month kicked off in the red, with weak economic data coming out of China and investors still keeping eyes on Washington for updates on a potential conclusion to the debt-ceiling drama.

Chinese factory activity contracted at a faster pace in May, and service-sector growth cooled off, dashing hopes for a stronger rebound in the world’s second largest economy. China’s sluggish emergence from COVID-19 lockdowns has showed up across all parts of its economy, including obscure commodities markets.

Meanwhile, the debt ceiling deal that President Joe Biden and House Speaker Kevin McCarthy reached over the weekend will head to a vote on the House floor Wednesday evening.

This month, the S&P 500 is up about 0.9%, while the Nasdaq Composite has added 6.5% and the Dow has declined more than 3%.

Here’s where US indexes stood as the market opened at 9:30 a.m. on Wednesday: 

Here’s what else is going on: 

In commodities, bonds, and crypto: 

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