The Dow Jones Industrial Average fell on Tuesday as market participants continued to monitor developments out of Washington D.C. surrounding Congress passing a tentative deal on raising the U.S. debt ceiling. The S&P 500 and Nasdaq Composite closed slightly higher.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): +0.00% or +0.07 points to 4,205.52

Dow Jones Industrial Average (DIA  ): -0.15% or -50.56 points to 33,042.78

Nasdaq Composite Index (QQQ  ): +0.32% or +41.74 points to 13,017.43

Over the weekend, President Joe Biden and House Speaker Kevin McCarthy reached an agreement to raise the debt ceiling to avoid a potential default. Congress is set to vote on the deal as early as Wednesday, with both Republican and Democratic support needed for the bill to become a law.

"The agreement prevents the worst possible crisis, a default, for the first time in our nation's history," Biden said Sunday evening at the White House. "Takes the threat of a catastrophic default off the table."

Also in the spotlight, Nvidia (NVDA  ) reached a $1 trillion market cap at the open on Tuesday. The stock, however, failed to hold above $404.86 to maintain that distinction throughout the session, falling to $990 billion market cap at market close. Nvidia is the fifth U.S. publicly traded company to reach that milestone, following Apple (AAPL  ), Alphabet (GOOGL  ), Amazon (AMZN  ), and Microsoft (MSFT  ).

Bank of America raised its price target on Nvidia to $500 per share from $450 on Tuesday, implying an upside of 28.4% from Friday's close.

"We reiterate Buy on top pick NVDA following CEO keynote at Computex (Annual computer expo) in Taiwan over the holiday weekend," analyst Vivek Arya wrote in a note. "Transforming into a data center powerhouse, NVDA highlighted how its full-stack platform has supported AI leadership, with company already partnered with >1,600 genAI startups (plus top hyperscalers). Indeed, AI upside is driving strong performance YTD (+180% vs. SOX +40%), but we believe we are only at the start of the story."

On the economic front, the Conference Board's consumer confidence index came in above expectations for May with a reading of 102.3. The month's reading was also below April's revised print of 103.7.

"Consumer confidence declined in May as consumers' view of current conditions became somewhat less upbeat while their expectations remained gloomy," said Ataman Ozyildirim, senior director of economics at The Conference Board, in a statement. "Their assessment of current employment conditions saw the most significant deterioration."

U.S. home prices rose 0.7% in March year-over-year, according to a report from S&P CoreLogic Case-Shiller Indices on Tuesday. Month-to-month, prices increased at a seasonally adjusted rate of 0.4% in March.

"The modest increases in home prices we saw a month ago accelerated in March 2023," said Craig J. Lazzara, managing director at S&P DJI, in a release. "Two months of increasing prices do not a definitive recovery make, but March's results suggest that the decline in home prices that began in June 2022 may have come to an end."

Looking ahead, market participants are expected to continue to trade cautiously as they wait for more details on the congressional debt ceiling decision.