US stocks experienced a downturn on Tuesday, with investors growing increasingly concerned about the possibility of a US debt default and the upcoming release of the April inflation report.

President Joe Biden was set to discuss potential solutions to the debt ceiling crisis with House Speaker Kevin McCarthy and other lawmakers after the market closed. However, McCarthy has indicated his opposition to a short-term debt ceiling increase, even as the US faces the possibility of running out of money in less than a month. Treasury Secretary Janet Yellen has warned that failure to raise the debt ceiling in time could lead to a “catastrophe” for the US economy.

Market participants are also keeping a close eye on the release of the April consumer price index (CPI) report, scheduled for Wednesday. This report will be crucial in informing central bankers’ future policy decisions. Analysts expect prices to have risen by 5% over the past year, which matches the figure reported in the March CPI.

For entrepreneurs and investors who follow market trends, these developments highlight the importance of staying informed about the broader economic and political landscape. As the situation unfolds, understanding the potential impact of the debt ceiling crisis and inflation data can help guide investment strategies and risk management.