Stocks were under pressure Tuesday, with regional bank shares retreating, as investors readied for key inflation reports due later in the week and progress on the U.S. debt limit.
The Dow Jones Industrials fell below the breakeven point 33.23 points, pausing for lunch hour at 33,585.46.
The S&P 500 index shed 14.99 points to 4,123.13.
The NASDAQ Composite sank 68.88 points to 12,188.03.
PacWest shares fell 6% after a volatile session in which the regional bank rose more than 3%.
Lucid, PayPal and Skyworks were all down after their quarterly reports were released. Meanwhile, Palantir jumped 14% on a strong earnings report and upbeat guidance.
President Joe Biden is set to meet with House Speaker Kevin McCarthy Tuesday afternoon at 4 p.m. Both sides have cautioned that the meeting is simply a chance to have a conversation, with definitive progress on raising the debt limit unlikely. Biden and McCarthy remain at odds over the House Speaker's caveat that a deal on raising the debt ceiling be tied to spending cuts. Biden maintains raising the debt ceiling is non-negotiable.
Treasury Secretary Janet Yellen said Monday afternoon that failing to raise the debt ceiling would be an “economic catastrophe,” and regulators are not close to any policies that would limit short-selling regional bank stocks.
Prices for the 10-year Treasury inched up, lowering yields to Monday's 3.52%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.31 to $71.85 U.S. a barrel.
Gold prices surrendered 20 cents to $2,033.00 U.S. an ounce.