U.S. stock indexes closed lower on Tuesday as investors grew more cautious ahead of a U.S. consumer price index report and a meeting between U.S. political leaders to discuss the debt ceiling.
Investors are awaiting the Labor Department’s consumer price index (CPI) report on Wednesday for clues on whether inflation is continuing to ease.
Talks over the U.S. debt ceiling are adding to caution in the market, as traders wait for an update on plans for the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy, and other congressional leaders at the White House.
Disappointing forecasts from companies such as PayPal and Apple supplier Skyworks also weighed on the mood.
PayPal shares dropped and pressured the benchmark S&P 500 after the company cut its margin forecast.
Skyworks Solutions Inc shares slid after the company forecast current-quarter revenue and earnings below estimates.
Pacwest Bancorp had another volatile day, leading losses in regional banks earlier in the session before closing up 2.35%. Shares of other Apple suppliers including Qualcomm, Broadcom, Qorvo, and Corning ended lower. The Philadelphia SE Semiconductor Index closed down 1.87%. Boeing Co rose 2.34% after budget carrier Ryanair Holdings Plc placed a multi-billion dollar order for Boeing jets.
Novavax surged 27.79% as the drugmaker planned a 25% cut to its global workforce.
Under Armour Inc fell 5.66% as the sports apparel maker forecast its annual sales and profit below street expectations.
Dialysis services provider DaVita Inc jumped 12.90% on a rise in its annual profit forecast as demand for procedures pick up in the U.S.
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