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- US stocks moved lower on Tuesday amid growing fears of a US debt default.
- President Joe Biden was due to meet top lawmakers to discuss the debt ceiling.
- Markets are also bracing for the April inflation report to be released on Wednesday.
US stocks fell on Tuesday as investors grew anxious over the risk of a US debt default and the upcoming April inflation report.
President Joe Biden was scheduled to discuss a solution to the debt ceiling crisis with House Speaker Kevin McCarthy and other lawmakers after the closing bell.
McCarthy has said he would reject a short-term debt ceiling increase, even as the US may have less than a month before running out of money. Failing to raise the debt ceiling in time could result in a “catastrophe” for the US economy, Treasury Secretary Janet Yellen warned on Monday.
Investors are also eyeing Wednesday’s release of the April consumer price index report, which will guide central bankers in future policy moves. Prices are expected to rise 5% over the last year, the same figure that was reported in the March CPI.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
- S&P 500: 4,119.18, down 0.46%
- Dow Jones Industrial Average: 33,561.81, down 0.17% (56.88 points)
- Nasdaq Composite: 12,179.55, down 0.63%
Here’s what else is going on:
- Berkshire Hathaway cut its stake in BYD , a top maker of EVs in China.
- Commercial real estate isn’t risky despite the recent turmoil in regional banks, according to BlackRock.
- Inflation could see an intense drop and fall below 2% by mid-2024, Pantheon’s Ian Shepherdson said.
- The dollar will continue to reign supreme for three key reasons, LPL’s chief global strategist said.
- Russia’s economy will be frozen for a long time as it relies more on China and “yuanization,” according to one think tank.
- Palantir stock soared 15% after the company reported strong earnings and unprecedented demand for its AI tool.
In commodities, bonds, and crypto:
- Oil prices rallied, with West Texas Intermediate up 0.6% to $73.60 a barrel. Brent crude, the international benchmark, inched up 0.45% to $77.33 a barrel
- Gold edged 0.4% higher to $2,041.70 per ounce
- The 10-year Treasury yield was flat at 3.52%
- Bitcoin rose 0.65% to $27,561.76