U.S. stocks fell on Tuesday: Major U.S. stock indices, including S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, decreased due to investor concerns over the debt ceiling* and inflation data.
* The debt ceiling is a legal limit on the amount of money the US government is authorized to borrow to meet its financial obligations.
It is a cap set by Congress on how much the government can borrow, and if the limit is reached, the government cannot borrow more money without Congressional approval.
The US government can borrow money by issuing securities such as Treasury bills, notes, and bonds, which are sold to investors such as individuals, corporations, and foreign governments through auctions.
--> S&P 500 was down 0.64%, Dow Jones Industrial Average down 0.74%, and Nasdaq Composite down 0.63%.
--> Nearly half of U.S. banks may have to tighten lending standards if the government doesn't raise the debt ceiling soon.
Other news about markets...
✦ Wall Street is awaiting Wednesday's inflation report to see if the Federal Reserve will continue to hike interest rates in June;
✦ Small business confidence fell in April to its lowest level since 2013;
✦ On the commodities front, oil prices rose to $73.54 a barrel.
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