Congress and the Fed have a busy schedule ahead

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Yes, there is negative news but I think today’s weakness is just the reaction to an overbought market

If you must have a news event to explain today’s weakness in U.S. stocks, I suppose the downgrade in global economic growth projections from the World Bank will do. Add a bit of worry that the primary defeat of House Majority Leader Eric Cantor (R.-Va.) will make future negotiations over raising the U.S. debt ceiling even more contentious and you’ve got “reasons” for today’s weakness

U.S. markets are starting to show some debt-ceiling nerves

The price of credit-default swaps (CDS) used to insure U.S. government debt against the possibility of default climbed to 35.5 basis points yesterday. That was the highest level in six months but still well below the 62 basis points in the 2011 debt ceiling battle. All this said, while markets are more nervous, they aren’t exactly very nervous yet—as the price of CDS indicates.