- US stocks dropped on Tuesday as the debt ceiling deadline quickly approaches with no deal yet to be had.
- President Joe Biden and House Speaker Kevin McCarthy were scheduled to continue their negotiations on Tuesday.
- Treasury Secretary Janet Yellen warned that “time is running out” on a debt ceiling agreement.
US stocks fell on Tuesday as investors await any progress on a potential debt ceiling deal as the deadline of June 1 quickly approaches.
President Joe Biden and House Speaker Kevin McCarthy were set to meet later today at 3 p.m. to further negotiations on a potential debt ceiling deal, and time is running out as Biden prepares to travel to Asia for a foreign policy trip.
Treasury Secretary Janet Yellen warned that “time is running out” and that the debt ceiling showdown is already impacting Americans.
“Every single day that Congress does not act, we are experiencing increased economic costs that could slow down the US economy,” Yellen said in prepared remarks to a banking conference on Tuesday. “We are already seeing the impacts of brinksmanship: investors have become more reluctant to hold government debt that matures in early June.”
Also weighing on stocks on Tuesday were earnings results from Home Depot, which were mixed with analyst estimates and lighter-than-expected guidance as home improvement projects become smaller and smaller.
Here’s where US indexes stood shortly after the 9:30 a.m. ET opening bell on Tuesday:
Here’s what else is happening this morning:
In commodities, bonds and crypto:
- West Texas Intermediate crude oil jumped 0.28% to $71.31 per barrel. Brent crude, oil’s international benchmark, rose 0.27% to $75.43.
- Gold fell 0.44% to $2,013.70 per ounce.
- The yield on the 10-year Treasury jumped 4 basis points to 3.54%.
- Bitcoin dropped 0.35% to $27,081, while ether rose 0.15% to $1,819.