US stock indices declined on Tuesday as investors focused on the fate of President Donald Trump’s giant tax cut proposal.
The legislation is expected to face a close vote later this week.
“We have a tremendously unified party,” Trump told reporters as he arrived at Capitol Hill on Tuesday to encourage Republicans to resolve their differences over the bill.
The market participants were also concerned after Federal Reserve officials on Monday flagged the ramifications of the Moody’s downgrade of the US government’s sovereign credit rating.
As of 10:30 AM Eastern time, the S&P 500 was down 0.4%, the Dow Jones Industrial Average was down 0.2%, and the Nasdaq Composite was 0.5% lower.
At 09:41 AM ET, the Dow Jones Industrial Average fell 80.50 points, or 0.19%, to 42,711.57, the S&P 500 lost 20.34 points, or 0.34%, to 5,943.26, and the Nasdaq Composite lost 86.45 points, or 0.45%, to 19,129.01.
In the bond market, the yield on the 10-year Treasury rose to 4.49% from 4.46% late on Monday. The two-year yield was holding steadier at 3.97%.
The US dollar strengthened a little against major currencies, ahead of a meeting of G-7 (Group of Seven) finance ministers in Canada.
The ministers will discuss global economic conditions and will seek a common position on Ukraine.
Gainers and Losers
Tesla stock surged 3.4% after Elon Musk said he was still committed to being the company’s CEO in five years’ time.
Home Depot shares gained 1.1% after the retailer reported better than expected quarterly sales.
Amer Sports stock climbed 18.4% after the company raised its annual revenue forecast.
Bullion
Gold prices rose on Tuesday amid uncertainty over US tariff policy and the Russia-Ukraine ceasefire.
Spot gold was up 1.6% at $3,280.32 an ounce by 1049 ET (1449 GMT), while US gold futures were 1.5% higher at $3,283.10.
Spot silver rose 1.3% to $32.78.
Crude oil
Oil prices fell on Tuesday due to uncertainty in US-Iran nuclear talks and Russia-Ukraine peace talks.
Brent futures slipped 25 cents, or around 0.4%, to $65.28 a barrel by 1222 GMT.
June US West Texas Intermediate crude futures, which expire on Tuesday, were down 20 cents, or 0.3%, to $64.6, while the more active July contract was down 19 cents, or around 0.3%, at $61.95 a barrel.
