2023-05-31 13:46:09
The Dow Jones index fell by 0.68%, the Nasdaq by 0.16% and the S&P 500 fell by 0.51% around 2:00 p.m. GMT.
The day before, the clues had ended in scattered order. The Dow Jones fell 0.15% to 33,042.78 points while the S&P 500 remained stable (+0.00%) at 4,205.52 points. Driven by technology and especially semiconductors linked to the development of artificial intelligence (AI), the Nasdaq concluded up 0.32% to 13,017.43 points.
“The Dow Jones is finishing its worst month since February while the S&P 500 and the Nasdaq should be positive for the third month in a row,” commented Art Hogan of B. Riley Wealth Management.
The drama of the raising of the debt ceiling of the United States continues to be at the center of the interests of investors.
The draft agreement sealed on Saturday between the White House and House Speaker Kevin McCarthy passed the milestone of approval in committee on Tuesday evening and awaits the green light from the House on Wednesday evening.
A vote is scheduled around 00:30 GMT. “There is consternation among some conservatives who find that too many concessions have been made to the Democrats,” warned Art Hogan.
The Democratic-dominated Senate must then adopt the text before Monday, when, according to Treasury Secretary Janet Yellen, the United States could run out of cash if the possibility of borrowing is not restored.
“Once the debt episode has passed, if any, markets will quickly turn back to monetary policy from the Fed as more and more of its members lean towards more rate hikes in the future. future,” said Art Hogan.
Several members of the central bank were due to speak on Wednesday. Above all, the Beige Book, the last economic report before the monetary meeting of June 13 and 14, must be published in the second part of the session and will give indications on the health of the activity of the world’s largest economy.
On the bond market, rates were stable, tending downwards to 3.67% against 3.68% the previous day for 10-year Treasury bills.
On the side, Nvidia, the manufacturer of processors boosted by demand linked to artificial intelligence (AI), came down from its heights after briefly passing the 1,000 billion capitalization mark on Wall Street on Tuesday.
The action of the group of Santa Clara (California), which took 175% since the beginning of the year, yielded 0.84% to 397 dollars.
C3ai, a software company also focused on AI, whose stock has also quadrupled since the start of the year, rose 6% to 41.25 dollars.
HP Enterprise, the branch that provides services and products to businesses, delivered mixed results in the second quarter and lowered its forecast. The action lost almost 7%. HP Inc, which includes the printer and PC business, fell 3.75%.
The auto parts chain collapsed 31.57% after announcing a cut in its dividend due to a poor first quarter that could continue for the rest of the year, management said.
JP Morgan bank fell 1.68% as a former bank executive told the Wall Street Journal he discussed with CEO Jamie Dimon whether to keep the accounts of Jeffrey Epstein, the financier accused of sex trafficking , which Jamie Dimon denies.
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