NEW YORK, New York - U.S. stocks continued to lose ground Wednesday as the top politicians in the country again demonstrated their incapacity to be able to govern. Another day of talks between the Biden administration and Republican leaders went by without a resolution even in sight. Stock markets around the world are getting quite jittery, as indicated by stock market falls around the globe as well as in the U.S. The U.S. dollar, meantime, has rallied sharply.

"Up until yesterday, investors have been very optimistic around the U.S. debt ceiling resolution," Angelo Kourkafas, senior investment strategist at Edward Jones told CNBC Wednesday. "But now as we get closer ... to the June 1st X-date, we are seeing some caution again," he said.

The Dow Jones industrials index did worst. They key index tumbled 255.59 points or 0.77 percent to close Wednesday at 32,799.92.

The Nasdaq Composite shed 76.08 points or 0.61 percent to 12,484.16.

The Standard and Poor's 500 dropped 30.34 points or 0.73 percent to 4,115.24.

Meanwhile, the Russell 2000 index, denoted by ^RUT, slipped by 20.18 points or 1.13 percent to finish at 1,767.54.

The NYSE Composite (DJ), represented by ^NYA, closed at 15,025.34 after a decline of 146.92 points or 0.97 percent.

The NYSE AMEX COMPOSITE INDEX, ^XAX, also faced downward pressure, dropping by 61.11 points or 1.52 percent to settle at 3,958.97.

The CBOE Volatility Index, also known as the VIX, affected investor sentiment in the U.S., which experienced an increase of 1.49 points or 8.04 percent, settling at 20.02. The VIX reflects the market's expectation of volatility and is often called the "fear gauge."

The U.S. dollar rose sharply against all the major currencies, particularly the commodity-bloc currencies. The euro was weaker Wednesday, but not by much. The EU unit dropped 0.15 percent to 1.0752.

The Japanese yen was unwanted, falling 0.52 percent to 139.299. The Canadian dollar dived 0.70 percent to 1.3597.

The British pound declined in value compared to the U.S. dollar, with the exchange rate closing at 1.2362. This indicates a decrease of 0.40 percent or 0.00492 points.

The Swiss franc fell 0.39 percent to 0.9047.

The Australian dollar experienced a significant decline against the U.S. dollar, ending around 0.6539, for a loss of 1.06 percent.

The New Zealand dollar, however, bore the brunt of the damage Wednesday, plummeting 2.31 percent to 0.6103, despite an interest rate hike of 25 basis points, from 5.25 to 5.50 percent by the Reserve Bank of New Zealand on Wednesday.

Global equity markets experienced a downward trend Wednesday as investors grappled with various economic concerns, particularly the debt crisis in Washington. Major indices from around the world reported losses, reflecting a decline in investor sentiment and jitters over the failed debt talks.

In Canada, the S&P/TSX Composite index concluded the day at 19,927.69, marking a decline of 218.32 points or 1.08 percent. The index traded at a volume of 207.513 million.

In London, the FTSE 100 index (^FTSE) concluded the day at 7,627.10, representing a decrease of 135.85 points or 1.75 percent. The decline was attributed to investors' cautious approach amidst economic uncertainties.

Similarly, in Germany, the DAX Performance-Index (^GDAXI) closed at 15,842.13, down by 310.73 points or 1.92 percent. The negative sentiment was fueled by concerns over global trade tensions and weakening economic indicators.

In France, the CAC 40 index (^FCHI) ended the trading session at 7,253.46, marking a decrease of 125.25 points or 1.70 percent. Investors remained cautious due to geopolitical uncertainties and slower-than-expected economic growth.

The ESTX 50 PR.EUR (^STOXX50E), representing the Eurozone, closed at 4,263.74, down by 78.64 points or 1.81 percent. Investors closely followed economic indicators and geopolitical developments, which influenced market sentiment.

The Euronext 100 Index (^N100) ended the day at 1,344.50, down by 21.97 points or 1.61 percent. The market witnessed a negative trend as investors navigated through economic uncertainties and geopolitical risks.

In Belgium, the BEL 20 index (^BFX) concluded at 3,656.28, reporting a decrease of 75.13 points or 2.01 percent. Investors remained cautious amidst global economic concerns and domestic political uncertainties.

The MOEX Russia Index (IMOEX.ME) closed at 2,222.51, down by 4.14 points or 0.19 percent. The Russian market experienced limited fluctuations as investors assessed global economic trends and domestic factors.

Japan's Nikkei 225 index (^N225) saw a decline of 275.09 points or 0.89 percent, closing at 30,682.68. The Japanese market experienced profit-taking activities after recent gains, coupled with concerns about the global economic outlook.

Hong Kong's Hang Seng Index (^HSI) closed at 19,115.93, down by 315.32 points or 1.62 percent. The index faced selling pressure amid fears of a slowdown in the Chinese economy and ongoing geopolitical tensions.

In China, the SSE Composite Index (000001.SS) closed at 3,204.75, reporting a decrease of 41.49 points or 1.28 percent. Investors reacted to concerns over regulatory changes impacting certain sectors and the potential impact on corporate profits.

The Shenzhen Index (399001.SZ) in China closed at 10,920.33, down by 92.25 points or 0.84 percent. Market participants monitored the regulatory landscape and its implications for technology and other sectors.

Australia's S&P/ASX 200 (^AXJO) closed at 7,213.80, showing a decline of 46.10 points or 0.63 percent. The market experienced selling pressure due to concerns about global growth and uncertainty surrounding the economic recovery.

In Singapore, the STI Index (^STI) ended the trading session at 3,214.21, showing a decline of 3.87 points or 0.12 percent. Investors monitored global economic developments and corporate earnings reports for market direction.

In India, the S&P BSE SENSEX, represented by ^BSESN, ended the day at 61,773.78, reflecting a decrease of 208.01 points or 0.34 percent.

On the other hand, the IDX COMPOSITE, represented by ^JKSE, experienced a slight uptick, rising by 9.12 points or 0.14 percent to close at 6,745.80.

The FTSE Bursa Malaysia KLCI, ^KLSE, registered a minor decline of 1.92 points or 0.14 percent, finishing at 1,409.62.

In New Zealand, the S&P/NZX 50 INDEX GROSS, represented by ^NZ50, saw a modest increase of 27.63 points or 0.23 percent, closing at 11,971.83.

The KOSPI Composite Index, denoted by ^KS11, remained almost unchanged, recording a marginal drop of 0.10 points or 0.00 percent to finish at 2,567.45.

The TSEC weighted index, ^TWII, in Taiwan, closed at 16,159.32, down by 28.71 points or 0.18 percent.

In Latin America, in Brazil, the IBOVESPA, represented by ^BVSP, faced a decline of 1,144.48 points or 1.04 percent, concluding the day at 108,784.05.

In Mexico, the IPC MEXICO, represented by ^MXX, experienced a positive day, rising by 283.67 points or 0.53 percent to close at 53,406.89. The index traded at a volume of 120.039 million.

The S&P/CLX IPSA in Chile, represented by ^IPSA, remained unchanged at 5,058.88, with no percentage change reported.

In the Middle East, in Israel, the TA-125, denoted by ^TA125.TA, closed at 1,764.22, reflecting a decline of 18.35 points or 1.03 percent.

Egypt's EGX 30 Price Return Index, represented by ^CASE30, witnessed a positive day, increasing by 302.90 points or 1.80 percent to settle at 17,090.60. The index traded at a volume of 174.918 million.

Elsewhere, the South African Top 40 USD Net TRI Index, represented by ^JN0U.JO, faced a setback as it dropped by 64.45 points or 1.61 percent, closing at 3,936.35.