NEW YORK: Wall Street stocks dipped early Tuesday following the latest round of negotiations to lift the US debt ceiling as treasury bond yields ticked higher.
President Joe Biden and House Speaker Kevin McCarthy described Monday night’s talks as productive.
Despite that constructive tone, “the market remains concerned that the extreme positions from both sides of the aisle can still demand their positions to be satisfied,” said Quincy Krosby of LPL Financial.
Markets also remain on guard about potential further Federal Reserve actions, with the rise in US Treasury yields implying expectations for more interest rate increases.
About 10 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 33,155.97.
The broad-based S&P 500 dipped 0.3 percent to 4,178.62, while the tech-rich Nasdaq Composite Index also shed 0.3 percent to 12,689.22.
Among individual companies, Broadcom advanced 1.9 percent after Apple announced a new multi-year multibillion dollar agreement for Broadcom to develop new 5G radio components. Apple dipped 0.9 percent.
Lowe’s advanced 1.6 percent despite lowering full-year projections due to “softer-than-expected consumer demand for discretionary purchases.”