The S&P 500 fell further Tuesday morning after a key meeting between President Joe Biden and House Speaker Kevin McCarthy on the debt ceiling failed to yield results.
The Dow Jones Industrial Average stagnated. The S&P 500 is down 0.2%, while the Nasdaq Composite is down 0.1% as of 6:00 PM HST.
McCarthy and Biden met at the White House on Monday night, and the spokesperson called the meeting “productive” and “professional.” The latest hour-long conversation — which took place just days before the earliest date the US could default on its debt — ended unresolved but seemed to strike a more positive tone.
The two-year Treasury yield rose for the ninth straight day on Tuesday, as traders priced in longer interest rate hikes and weighed in on debt ceiling confusion.
The two-year yield rose to 4.38% in morning trading, accompanied by a rise in the 3-month and 30-year Treasury yields. The move came as traders appreciated further strength in the US economy and continued inflation, which could leave open the possibility of a rate hike by the Federal Reserve in June and possibly July.
