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," Yellento 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.