2023-05-30 20:42:10
The Dow Jones index 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 following rising more than 1.4% in session .
The event of the day was the rise of Nvidia, the manufacturer of ultra-powerful processors sought for AI, within the very closed circle of groups which are worth more than 1,000 billion dollars on Wall Street.
At the opening, the Santa Clara group exceeded this threshold for the first time in its history, the action, which took 175% since the beginning of the year, passing well above 404.86 dollars for cross this limit.
The company has thus joined the five behemoths of Wall Street whose stock market valuation goes beyond 1,000 billion. These are four American tech giants (Apple, Microsoft, Amazon, Alphabet) and the Saudi oil group Saudi Aramco.
In the second part of the session, however, Nvidia reduced its sails and fell below this symbolic bar to close up 2.99% at 401.11 dollars.
– The debt agreement in the crosshairs –
“The Nasdaq led the dance with Nvidia, which joined the mega-valuation club (…) but the spotlight remains on Washington and the House of Representatives,” said Edward Moya of Oanda.
The Lower House is due to vote Wednesday on the draft debt deal reached between the White House and congressional leaders. The Senate might vote this weekend.
In broad outline, the agreement sealed this weekend raises the public debt ceiling of the United States for two years. This is currently set at $31.4 trillion.
It provides for a reduction of 10 billion dollars in the funds allocated to the tax services to modernize and imposes new conditions for benefiting from certain social aid.
The vote in Congress is not certain, however, and the text is the subject of fierce resistance from some elected officials on both sides.
“It will take little for the agreement in principle to derail, but optimism is in order”, investors “believing that Congress will not put the economy in danger by triggering a disaster that is nevertheless avoidable”, continued Mr. Moya.
The agreement must be ratified before June 5, the date following which, according to Janet Yellen, the Treasury Secretary, the United States will run out of cash to pay their installments.
On the macroeconomic front, consumer confidence in the United States fell in May to its lowest level since November. This slightly darkened the indices which had started off on a better footing at the start of the session.
On the value side, Tesla climbed 4.14% to 201 dollars as the boss of the electric vehicle manufacturer traveled to China where he met the Chinese foreign minister.
Ford gained 4.09% to 12.59 dollars following a favorable rating from analysts.
The Kohl chain’s stock fell 5.14% to $19 following suffering, like its rival Target last week, a volley of protests on social networks because the sign sells items celebrating the community LGBT+ and Gay Pride.
On the bond market around 8:20 p.m. GMT, yields eased to 3.69% once morest 3.79% on Friday for ten-year Treasury bills.
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