The S&P 500 fell 0.4% this week, its first weekly decline since mid-June. The Dow Jones Industrial Average dropped 0.2%, and the Nasdaq Composite fell 0.6%. Investors are concerned about the US government’s ability to raise its debt limit before it runs out of cash in September. President Joe Biden was scheduled to meet with other lawmakers on Friday to discuss a possible solution to the debt ceiling crisis. However, talks have been postponed until next week. The looming debt crisis has raised fears of potential instability and financial shockwaves. This has caused investors to pull back from the markets and search for safe havens to park their money.

Federal Reserve Governor Michelle Bowman also floated the possibility that the Fed may raise interest rates to tackle high inflation. This raised further fears that tighter Fed policy could spark a recession. The University of Michigan consumer sentiment survey dipped to 57.7 in May, its lowest level in six months. Meanwhile, inflation expectations over the next five years rose to 3.2%, the highest level since 2008. The US indexes stood at the 4:00 p.m. closing bell on Friday: S&P 500: 4,124.12, down 0.16%; Dow Jones Industrial Average: 33,300.62, down 0.03% (8.89 points); and Nasdaq Composite: 12,284.74, down 0.35%