US stocks slumped ahead of the key inflation print, and the debt ceiling standoff weighed on investor sentiment. The dollar moved higher.

The S&P 500 ended the day 0.5% lower, with Paypal being the worst performer on the index following its earnings report last night outlining a disappointing outlook. The Nasdaq 100 fell 0.7%. Stock gauges have been trading in a narrow range as participants weigh a potential end to the Fed's tightening campaign against the possibility of an economic slowdown.

Investors are following efforts in Washington to end an impasse over the US debt ceiling, with Biden sitting down with congressional leaders tonight as they face pressures to form a deal.

US House Speaker McCarthy rejected the idea of a short-term debt limit increase ahead of the meeting. US Treasury Secretary Yellen has warned that the debt limit could be breached as soon as June 1st.