U.S. stock index futures were lower Tuesday, with dour earnings forecasts from Apple supplier Skyworks and payments firm PayPal weighing on sentiment, while investors focused on a debt-ceiling deadlock.

Regional bank shares, which failed to hold on to their short-lived bounce a day earlier, extended declines, with Pacwest Bancorp falling 12.6% and Western Alliance dropping 5.9%.

Markets are waiting for an update on the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders at the White House later in the day.

Worries of a potential government default loom over Washington as early as June 1, if Congress does not act to resolve the deadlock.

The data-packed week will see the release of the much-awaited inflation report on Wednesday. The Labor Department’s consumer price index (CPI) is expected to climb 0.4% in April after gaining 0.1% in March.

Reports on producer prices, weekly jobless claims and consumer sentiment are all lined up for the week.

“Last week’s jobs report appeared to have something for every optimist – indicating that the labor market is slowing, showing Fed policy is pushing in the right direction,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“The feel-good factor has fizzled out as investors play a waiting game for the next slice of data on the economy, while worries about the U.S. defaulting on its debts edge higher again.”

At 6:51 a.m. ET, Dow e-minis were down 118 points, or 0.35%, S&P 500 e-minis were down 14.75 points, or 0.36%, and Nasdaq 100 e-minis were down 53.25 points, or 0.4%.

Among stocks, chip-gear maker Skyworks Solutions Inc’s shares tumbled 10% in premarket trading after forecasting current-quarter revenue and earnings below estimates.

Investors were optimistic about Skyworks after Apple Inc’s strong quarterly showing on Thursday. Shares of other Apple suppliers including Qualcomm and Qorvo fell 0.6% and 1.5%, respectively.

PayPal Holdings dropped 4.8% after a cut to its margin forecast.

Novavax added 8.5% as the drugmaker plans a 25% cut to its global workforce.

Wall Street’s three main indexes ended the previous session flat, but growth-oriented Nasdaq 100 index touched a more than eight-month high, while the NYSE FANG+TM index jumped to its highest since April 2022.

(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Sonia Cheema and Anil D’Silva)

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