Wall Street opened lower on Tuesday as talks over increasing the U.S. debt limit remain inconclusive. White House and congressional Republican negotiators will meet again later in the day to discuss how to raise the $31.4 trillion debt ceiling, with just nine days left for the deadline. Trading on the S&P 500 index was stuck in a 30-point range in the last two sessions as U.S. debt ceiling talks lingered.
Worries over the debt limit pushed yields on one-month Treasury bills to record highs at 5.888%. Investors also await S&P Global’s flash reading of the U.S. Composite PMI Index for May and Dallas Federal Reserve President Lorrie Logan’s remarks due later in the day.
Megacaps were largely subdued with Meta Platforms Inc, Apple Inc and Alphabet Inc down between 0.2% and 0.4% in premarket trading. Lowe’s Companies Inc fell 1.3% after the retailer cut its annual comparable sales forecast. Shares of larger rival Home Depot dipped 0.1%.
Dicks Sporting Goods added 2.5% after the retailer beat first-quarter estimates and reiterated its annual sales forecast. Zoom Video Communications fell 2.6% after the video conferencing platform recorded its slowest quarterly revenue growth. Shares of regional lenders extended gains from the previous session, led by a 16.2% rise in PacWest Bancorp.