US equities slid at the start of a week jam-packed with corporate earnings and economic data that could shed light on the Federal Reserve's interest rate policy.

The S&P 500 was little changed, while the Nasdaq 100 fell 0.2% as manufacturing data came in weaker than expected and Treasury yields fell amid debt ceiling drama. Bed Bath & Beyond stock fell after the company announced plans to close all of its stores. Meanwhile, the dollar fell against major currencies, while oil rose.

On deck for a busy week of earnings with tech behemoths Microsoft, Meta Platforms, and Amazon. The US GDP data is expected to show slower growth, while the Fed's preferred inflation gauge, the core PCE deflator, is expected to show slower price growth.

Interest rates are expected to peak in the coming weeks, followed by a series of cuts later in the year, according to swaps markets. However, not everyone shares this viewpoint. Data from the Commodity Futures Trading Commission show that leveraged investors increased net short positions on 10-year Treasury futures to a record this month. This indicates that they believe Fed officials will continue to raise interest rates in order to combat inflation.