US stock futures fell ahead of Tuesday’s opening price.
Contracts for the S&P 500 (^GSPC) were down 0.38% and the Dow Jones Industrial Average (^DJI) was down 0.36%. The technology-focused Nasdaq Composite Index (^IXIC) fell 0.43%.
The clock is ticking for a split US Congress to raise the federal debt ceiling, which is now over $31 trillion but risks running out of cash on June 1st. Very thin margins complicate matters. President Joe Biden is scheduled to meet with congressional leaders on Tuesday.
Wall Street is also eyeing Wednesday’s April inflation report, which will likely be the headline event of the week. Headline inflation is forecast to rise by 0.4% month-on-month and 5.5% year-on-year. Some economists expect energy prices to likely rise later in the month, but food prices are not expected to show a slowdown in March.
Nearly half of US banks are tightening lending standards as the US approaches the brink of default. If businesses struggle to access loans, it could cut investment and slow economic growth. As JP Morgan analysts wrote on Tuesday, the tightening of credit terms could “effectively act as a rate hike for the Fed.”
Meanwhile, Fed officials have shifted their focus to the debt ceiling debate. Chicago Federal Reserve Bank President Austan Goolsby said in an exclusive interview with Yahoo Finance on Monday that the new battle would come “at the worst possible time.” and the job market. ” He called on lawmakers to finish the job.
Separately, economic data showed small business owner confidence fell to its lowest level since 2013 in April, signaling a slowdown in business investment.
US Treasury yields fell Tuesday morning. Yields on 10-year bonds he fell to 3.48% and yields on 2-year bonds he fell to 3.97%.
On the earnings front, Wall Street expects results from Airbnb, Inc. (ABNB), Rivian Automotive, Inc. (RIVN) and Warren Buffett’s favorite Occidental Petroleum (OXY).
In a single-stock move, Palantir Technologies (PLTR) shares surged Tuesday morning after better-than-expected first-quarter results and expectations of a profit by the end of the year.
Shares of PayPal Holdings, Inc. (PYPL) fell on Tuesday even as the payments firm raised its earnings outlook for 2023.
Shares of Lucid Group, Inc. (LCID) fell after the EV maker reported lower-than-expected first-quarter earnings on Monday and adjusted its 2023 production forecast.
Shares of Tyson Foods, Inc. (TSN) rose Tuesday morning after the company lowered its sales forecast and said costs were rising due to lower demand for pork and beef. Shares fell more than 16% on Monday.
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Dani Romero is a reporter at Yahoo Finance. follow her on her twitter @daniromerotv
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