US stocks slide as Washington lacks movement on reaching a debt-ceiling agreement

Investors were anxious Tuesday with no word on a debt-ceiling deal. "It's a slow walk," Rep. Patrick McHenry said, according to Roll Call.

• US stocks fell Tuesday as debt-ceiling talks appeared to stall. 
• "It's a slow walk," Rep. Patrick McHenry said, according to Roll Call. 
• The Treasury Department is reportedly hunting for ways to conserve cash. 

US stocks dropped Tuesday with no word yet from the White House or Republicans on whether any more progress has been made on a deal to steer the country away from a potential debt default.  

The Dow Jones Industrial Average lost ground for a second consecutive day, and the Nasdaq Composite was knocked lower after logging its highest close of the year in the previous session. 

Investors appeared spooked by the lack of movement from Democrats and Republicans over reaching a deal to raise the $31 trillion debt ceiling. Treasury Secretary Janet Yellen has said the government will run out of cash to pay bills as soon as June 1.

Looking for ways to conserve cash, the Treasury Department has asked government agencies whether they can make upcoming payments at a later date, the Washington Post reported, citing unnamed sources.

 Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday: 

• S&P 500: 4,145.58, down 1.12%

• Dow Jones Industrial Average: 33,055.51, down 0.69% (231.07 points)

• Nasdaq Composite: 12,560.25, down 1.26%

Republican negotiators said Tuesday that no progress had been made in bridging differences with White House negotiators, according to Roll Call. Meanwhile, congressional Democrats have said "extreme" demands by Republicans to get a deal done are hindering bipartisan support.

"It's a slow walk," Rep. Patrick McHenry, R-North Carolina, said Tuesday, according to Roll Call. "There's a lack of urgency that is problematic, deeply problematic."

Earlier this month, the White House's Council of Economic Advisers warned a debt default could ignite a 45% crash in the stock market and throw the economy into a deep recession. 

Here's what else is happening today:

• Stocks will be damaged even if lawmakers reach a debt ceiling deal, said a market veteran.
• Treasury Department could issue $700 billion in T-bills within weeks of a debt-ceiling deal, draining liquidity from markets.
• JPMorgan CEO Jamie Dimon warned commercial real estate poses risks to US banks. 
• Investors could benefit from revamping their 60/40 portfolios, a top Goldman strategist said.
• Carl Icahn's wealth has plunged by $15 billion since a short-seller targeted him, but the activist investor is ready to fight back.

In commodities, bonds, and crypto:

• West Texas Intermediate crude rose 1.2% to trade at $72.91 per barrel. Brent crude, the international benchmark, rose 1.1% to $76.84.  
• Gold picked up $0.50 to $1,977.50 per ounce. 
• The 10-year Treasury yield fell 1 basis point to 3.70%.
• Bitcoin moved up by 1.1% to $27,148.06.