US stocks close lower before debt ceiling vote; Nasdaq gains 6% in May

By Ovunc Kutlu

ISTANBUL (AA) - US stocks closed lower Wednesday as investors focus on a critical debt ceiling vote in Congress.

The Nasdaq, however, gained almost 6% in May.

The index was down 82 points, or 0.63%, to finish the last trading day of May at 12,935. The tech-heavy index managed to increase 5.9% for the month.

The Dow fell 134 points, or 0.41%, to end the session at 32,908. The blue-chip index plummeted 3.4% in May.

The S&P 500 declined 25 points, or 0.61%, to close at 4,179 but managed to post a gain of 0.2% for the month.

Investors are eying the key debt ceiling vote in the House of Representatives later Wednesday after President Joe Biden reached a deal Sunday with House Speaker Kevin McCarthy.

The agreement cleared a 7-6 vote Tuesday in the House Rules Committee, advancing to the House floor for a vote by lawmakers, which aims to prevent the world's largest economy from defaulting on its debt obligations.

The VIX volatility index, also known as the fear index, rose 2.8% to 17.96. The 10-year US Treasury yield, meanwhile, fell 1.7% to 3.637%.

The dollar index was up 0.06% to 104.23, while the euro fell 0.44% to $1.0688 against the greenback.

Precious metals were in positive territory, with gold adding 0.2% to $1,963 per ounce and silver rising 1.4% to $23.52.

Oil prices lost more than 1.6%, with global benchmark Brent crude at $72.50 per barrel and US benchmark West Texas Intermediate at $68.01.