YELP - Debt Ceiling Talks Drag on Weigh on Stocks

Stocks fell Tuesday as ongoing debt ceiling discussions appeared to yield little progress.

The Dow Jones Industrials lost their mojo during the afternoon, plummeting 231.07 points to close Tuesday at 33,055.51.

The S&P 500 dropped 47.05 points, or 1.1%, to 4,145.58.

The NASDAQ collapsed 160.53 points, or 1.3%, to 12,560.25.

Some traders interpreted the lack of any major updates on negotiations as a sign that lawmakers, perhaps, are struggling to progress as hoped.

Investors have been closely eyeing debt-limit negotiations in Washington, hoping for more certainty as the so-called June 1 X-date set by Treasury Secretary Janet Yellen fast approaches. Some House Republicans on Tuesday questioned the accuracy of this projected default date.

On Monday, President Joe Biden and House Leader Kevin McCarthy and Biden met at the White House, in a discussion that the House speaker described as “productive” and “professional,” even though the hourlong talk concluded without a resolution.

Apple moved 1% lower after announcing a multi-billion-dollar chip production deal with Broadcom. The chip stock gained about 2%. Yelp popped 6.6% as an activist investor called for the company to explore a sale

Prices for the 10-year Treasury regained lost ground, lowering yields to 3.70% from Monday's 3.71%. Treasury prices and yields move in opposite directions.

Oil prices added $1.02 to $73.07 U.S. a barrel.

Gold prices were unchanged at $1,977.20 U.S. an ounce.