Traders work on the floor of the New York Stock Exchange during morning trading on April 10, 2023 in New York City.
Michael M. Santiago | Getty Images
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 Industrial Average traded 127 points lower, or 0.4%. The S&P 500 fell 0.2% along with the Nasdaq Composite.
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.”
On Monday, Yellen reaffirmed that the U.S. faced the possibility of default as early as June 1, the so-called X date, if a deal isn’t reached between the White House and Congress.
“Waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” Yellen said. “In fact, we have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June.”
Biden maintained a more optimistic view of the ongoing negotiations over the weekend, while House Speaker Kevin McCarthy, R-Calif., said significant obstacles still 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.
“We worry the…
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