- US stocks fell Tuesday as debt-ceiling talks wear on in Washington, DC.
- House Speaker Kevin McCarthy said talks have been "productive" but differences with Democrats remain.
US stocks fell Tuesday as investors continued to wait on word from Washington that a deal to avert a potential US debt default has been reached.
With the federal government due to run out of cash as soon as June 1, the White House and Republican lawmakers still have no agreement to raise the $31 trillion debt ceiling.
House Speaker Kevin McCarthy after a Monday meeting with President Joe Biden said there's potential a deal could be reached but there were still hurdles to overcome with Democratic lawmakers. Republicans are seeking spending cuts in exchange for raising the debt limit.
"We don't have an agreement yet, but I did feel the discussion was productive in areas that we have differences of opinion," McCarthy said, according to ABC News.
Meanwhile, the Nasdaq Composite logged its highest finish of the year on Monday, extending its 2023 gains to nearly 22%. Apple has been among its strongest performers, up 34% since the start of 2023 and on the edge of a $3 trillion valuation.
Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 4,178.82, down 0.33%
- Dow Jones Industrial Average: 33,170.74, down 0.35% (115.84 points)
- Nasdaq Composite: 12,681.03, down 0.31%
Here's what else is happening today:
- JPMorgan CEO Jamie Dimon warned commercial real estate poses risks to US banks.
- Investors could benefit from revamping their 60/40 portfolios, a top Goldman strategist said.
- Carl Icahn's wealth has plunged by $15 billion since a short-seller targeted him, but the activist investor is ready to fight back.
In commodities, bonds, and crypto:
- West Texas Intermediate crude rose 1.3% to trade at $72.99 per barrel. Brent crude, the international benchmark, rose 1.2% to $76.91.
- Gold fell 0.8% to $1,960.90 per ounce.
- The 10-year Treasury yield rose 2 basis points to 3.74%.
- Bitcoin gained 1.1% to $27,348.15.