Wall Street fell awaiting crucial US inflation data

The New York Stock Exchange closed lower this Tuesday, since Investors were more cautious awaiting a report on the US consumer price index and a meeting between US political leaders to discuss the debt ceiling.

The S&P 500 lost 18.87 points, or 0.5%, to end at 4,119.25 points.Meanwhile he Nasdaq Composite was down 77.36 points, or 0.6%, at 12,179.55. The Dow Jones Industrial Average fell 54.67 points, or 0.2%, to 33,564.02.

Following the release of the Labor Department’s Consumer Price Index (CPI) on Wednesday, investors will look for clues as to whether inflation continues to subside. The US debt ceiling talks are increasing caution in the market, as traders were also expecting an update on debt ceiling plans from a meeting between US President Joe Biden, House Speaker Kevin McCarthy, Republican, and other congressional leaders in the White House.

Concern over a possible government default looms over Washington starting June 1 if Congress does not act to resolve the impasse.

“Overall, it’s a relatively calm day, but both the debt ceiling and inflation are causing some anxiety,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

The disappointing forecasts of companies like PayPal and Apple supplier Skyworks also weighed on sentiment, while regional banks such as Pacwest Bancorp rose.

Shares of PayPal Holdings tumbled, putting pressure on the benchmark S&P 500 index after the company cut its margin forecast. The stock was also one of the main drags on the Nasdaq.

Skyworks Solutions shares fell after the company forecast revenue and profit for the current quarter below estimates.

The shares of other providers of Apple, such as Qualcomm, Broadcom, Qorvo, and Corning.

Boeing rose after budget airline Ryanair Holdings Plc placed a multi-billion dollar order for Boeing jets. Novavax rose as the drugmaker plans a 25% cut in its global workforce.