Stocks Plummet on Debt Ceiling Worries - InvestingChannel

Stocks Plummet on Debt Ceiling Worries

Stocks dipped Tuesday as investors digested a lackluster forecast from Home Depot. Wall Street also turned its attention to a meeting between congressional leaders and President Joe Biden on the U.S. debt ceiling.

The Dow Jones Industrials lost 240.51 points to begin Tuesday at 33,108.09.

The S&P 500 backed off 17.17 points to 4,119.11.

The NASDAQ Composite removed 11.56 points to 12,353.65.

Dow member Home Depot pulled back by 3.3% after the home improvement retailer reported disappointing quarterly revenue and cut its full-year guidance.

Meanwhile, April retail sales rose 0.4% last month, lower than the 0.8% increase anticipated by economists polled by Dow Jones.

Investors are anxiously awaiting progress on a deal to raise the debt ceiling before June 1, which is the earliest date the Treasury Department has said the U.S. could default on its debt obligations. Treasury Secretary Janet Yellen said last week that a lack of a deal could spur an “economic catastrophe.”

Biden maintained a more optimistic view of the ongoing negotiations over the weekend, while House Speaker Kevin McCarthy, R-Calif., said significant obstacles remain.

Biden has so far maintained that raising the debt ceiling is non-negotiable. McCarthy, however, has pushed for talks to broker a deal to raise the debt ceiling be tied to spending cuts.

Prices for the 10-year Treasury lost ground, raising yields to 3.56% from Friday’s 3.50%. Treasury prices and yields move in opposite directions.

Oil prices added 15 cents to $71.26 U.S. a barrel.

Gold prices forfeited $13.10 to $2,009.60 U.S. an ounce.

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