NEW YORK: The US stock market experienced a dip in early trading on Tuesday as treasury bond yields ticked higher following the latest round of negotiations to raise the US debt ceiling.
President Joe Biden and House Speaker Kevin McCarthy characterized Monday night’s talks as productive, but concerns lingered among investors regarding the potential demands from both sides of the political aisle.
“The market remains concerned that the extreme positions from both sides of the aisle can still demand their positions to be satisfied,” commented Quincy Krosby of LPL Financial, highlighting the ongoing uncertainties.
Additionally, market participants remained vigilant about possible actions by the Federal Reserve, as the increase in US Treasury yields suggested expectations of further interest rate hikes.
Trading at US Stocks
Approximately 10 minutes into the trading session, the Dow Jones Industrial Average declined by 0.4 percent, reaching 33,155.97. The broader S&P 500 also slipped by 0.3 percent to 4,178.62, while the tech-heavy Nasdaq Composite Index experienced a similar decline of 0.3 percent, resting at 12,689.22.
In terms of individual companies, Broadcom saw a 1.9 percent gain after Apple announced a new multi-year multibillion-dollar agreement for Broadcom to develop new 5G radio components.
On the other hand, Apple itself dipped by 0.9 percent. Despite lowering full-year projections due to softer-than-expected consumer demand for discretionary purchases, Lowe’s managed to advance by 1.6 percent.
