On Tuesday, the US stock market saw declines as investors awaited updates on the debt ceiling and inflation data. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all dipped. Regional banking volatility continues, with PacWest Bancorp reversing losses earlier in the session. Oil prices rose to $73.54 a barrel, while nearly half of US banks tightened lending standards, potentially slowing economic growth. Wednesday's April inflation report is also anticipated, which could impact whether the Federal Reserve continues to hike interest rates at its June meeting. Meanwhile, small-business owner confidence fell to the lowest level since 2013.
Shares of Palantir Technologies jumped after the company's first-quarter results topped expectations, while PayPal Holdings saw a decline after cutting its outlook for annual adjusted operating margin. Boeing Company and Novavax Inc. saw increases in shares after airplane orders and restructuring plans, respectively. However, shares of Lucid Group fell after lower-than-expected first-quarter revenue and trimmed production forecasts. Tyson Foods also saw a decline following the company's cut in sales forecast and rising costs.
The clock is ticking for Congress to raise the federal government's debt ceiling, with President Biden meeting with congressional leaders on Tuesday. As the US approaches the brink of default, tighter credit conditions may "act as a de-facto Fed hike." Wall Street is also looking ahead to Wednesday's inflation report for clues on the Federal Reserve's future decisions.
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