Wall St falls as labor data spurs rate hike jitters before debt ceiling vote

The major U.S. stock indices closed down on Wednesday as investors expressed concern that the Federal Reserve may hike interest rates again in June if the “hawkish pause” proved to be fleeting. Although the House of Representatives is poised to vote for a bill to lift the federal debt ceiling, the economy is still slowing, and inflation needs to decline further. Futures traders predict a 70% probability of a 25-basis-point hike at the June 13-14 Fed meeting. Tim Ghriskey, Chief Investment Strategist at Inverness Counsel, said forthcoming employment data could determine whether a rate hike occurs.