Moody’s said tourism-dependent states including Arizona, Florida and Nevada will eventually experience “sharp” job loss as well those that rely on auto manufacturing like Michigan and South Carolina. Other states that would feel significant impact are ones that rely on federal spending and aerospace such as Virginia, Connecticut, Kansas and Washington. The most immediate impact would be for regions with a large federal government presence, including Washington DC and states located near or that rely on federal institutions such as national labs or military bases such as Alaska, Hawaii and New Mexico. Moody’s found that most states would be “hit hard” by a debt limit breach, but the economic pain would vary from state to state. Michigan’s unemployment rate would peak at 10.8%, up from 4.1% today. In that scenario, Moody’s estimates the unemployment rate would spike to near-double digits in the District of Columbia (8.9%), California (8.7%) and Ohio (9.5%). The analysis spells out the widespread damage that would be caused in the unlikely event of a protracted breach of the borrowing limit. Al Drago/Bloomberg/Getty Imagesįlorida, Ohio and Pennsylvania would likely lose hundreds of thousands of jobs apiece if there is a prolonged breach of the debt ceiling, according to projections released on Wednesday by Moody’s Analytics. The US Treasury building in Washington, DC, on March 13.
Investors are also looking to the April Producer Price Index as well as the latest jobless claims and mortgage rates data set for release Thursday.Īs stocks settle after the trading day, levels might still change slightly. West Texas Intermediate, the US benchmark for oil, ticked down about 1.2% to roughly $73 a barrel. Shares of Airbnb fell 10.9%, marking its worst day since November 2022 after the company on Tuesday issued a cautious outlook for the current quarter and a miss on bookings.
JPMorgan Chase shares fell roughly 0.1% and Wells Fargo declined 0.6%. Shares of PacWest Bank slipped 0.5%, Ke圜orp fell 4.1% and New York Community Bank slid by 1.1%. Tech stocks gained: Alphabet shares rose about 4%, Advanced Micro Devices gained about 2%, ServiceNow ticked up 2.9% and Amazon added 3.3%.īank stocks fell.
But trading wavered throughout the day as Wall Street continued to worry about the banking sector's stability and the looming debt ceiling crisis. The April Consumer Price Index showed that inflation cooled last month, sending stocks higher earlier in the session. Stocks ended Wednesday mixed as investors digested the latest inflation data.
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