Traders work on the floor of the New York Stock Exchange on May 03 in New York City.
(Spencer Platt/Getty Images)
Stocks fell Tuesday, dropping steeply in the hour leading up to the close as investors grew increasingly worried about the economy’s health.
The Dow Jones Industrial Average and the S&P 500 are on pace to end the week down. The Nasdaq Composite is on pace to rise for the week.
President Joe Biden is meeting with congressional leaders this afternoon on the debt ceiling limit. Republican Speaker Kevin McCarthy said Tuesday that stricter work requirements for some government aid programs are a “red line” in negotiations — a provision Biden sounded guardedly open to on Sunday.
Biden is cancelling part of his upcoming travel to Papua New Guinea and Australia amid the debt ceiling discussions, a source familiar tells CNN.
Meanwhile, shares of Home Depot fell 2.2%, dragging down the stock market as the retail bellwether’s disappointing outlook stoked fears about the economy’s health.
Crude prices also fell on the uncertain economic outlook. West Texas Intermediate crude, the US benchmark, declined to roughly $71 a barrel.
Investors also digested the Senate Banking Committee’s interrogation of former leaders at collapsed lenders Silicon Valley Bank and Signature Bank on Tuesday. The former executives were grilled on their conduct, their response to the banks’ failures and their multimillion-dollar compensation during their tenures.
Regional bank shares fell after rallying earlier in the day. PacWest shares fell 14.6%, New York Community Bank declined about 1.3% and KeyCorp fell 2.3%.
Lawmakers continue their probe into America’s financial system on Wednesday at 2:30 p.m. ET, in an Economic Policy Subcommittee hearing chaired by Democratic Senator Elizabeth Warren on “strengthening accountability” at the Federal Reserve.
Tesla shares rose 0.1% ahead of the electric vehicle maker’s annual shareholders meeting on Tuesday at 4 pm ET.
The Dow fell 336 points, or about 1%.
The S&P 500 declined 0.6%.
The Nasdaq Composite rose 0.2%.
As stocks settle after the trading day, levels might still change slightly.