2023-05-24 21:31:55
Wall Street stocks fell for two days in a row. The U.S. debt ceiling negotiations encountered another obstacle, which was not good for the market sentiment. The Dow fell for 4 days in a row and fell more than 730 points. The broad market fell widely. Among the 11 industry sub-indexes of the S&P 500, only energy stocks reported gains. Crude oil inventories unexpectedly fell sharply, or reflecting strong demand in the United States, and oil prices rose.
U.S. stocks and foreign currency real-time quotes Multi-national news
Market conditions on May 24 (Wednesday)
l The Dow Jones Industrial Average fell 255.59 points, or 0.77%, to 33,799.92 points.
l The S&P 500 index fell 30.34 points, or 0.73%, to 4,115.24 points.
l The Nasdaq index fell 76.08 points, or 0.61%, to 12,484.16 points.
l Oil futures for June delivery in New York closed at $74.34 a barrel, up $1.43 or 2.0%. Oil prices were supported following the U.S. Energy Information Administration (EIA) reported that U.S. crude inventories fell by 12.5 million barrels last week, the largest weekly drop this year. In addition, Saudi Arabia’s energy minister warned traders not to bet on a continued decline in oil prices. Analysts believe that it hinted that major oil producers may cut production once more, which also boosted oil prices.
l New York gold futures for June delivery closed at $1,964.6 an ounce, down $9.9 or 0.5%.
l The US 10-year Treasury yield closed at 3.719%, up 2.1 basis points.
Nvidia announced its results following the market closed. Benefited from the upsurge of artificial intelligence, both revenue and profit were better than expected. The stock price soared by 20% during the extended trading hours, and other AI concept stocks all rose. Financial stocks generally fell, while energy stocks bucked the trend and rose along with oil prices.
House Speaker McCarthy announced the resumption of talks on Wednesday, saying “I think we can make progress today,” while dismissing suggestions that a deal was out of the question given criticism from conservative Republicans. He also said he would stay in Washington, D.C., until negotiations reach an agreement. But last night, Conservative Congressman Chip Roy insisted on “holding the bottom line” and only allowing the Republican plan to pass, which resonated with many Republicans.
Deutsche Bank analyst Jim Reid wrote in a note that investors are growing concerned that this debt impasse “is likely to persist” and is bracing for a bumpy road ahead.
The minutes of the Federal Reserve’s May meeting on interest rates showed that officials were clearly divided on whether it is necessary to further raise interest rates, and more officials believed that they should be prepared to suspend interest rate hikes.
Several participants noted that further policy tightening may not be necessary following this meeting if the economy develops in line with their current expectations, the minutes showed. Some other participants held the opposite view, as they expected that “the process of returning inflation to 2% may continue to be unacceptably slow”.
Federal Reserve Board Governor Christopher Waller said that it is too early to announce the end of the tightening cycle, and whether to raise interest rates at the June meeting depends on key data in the next few weeks. “I’m not in favor of pausing rate hikes unless there’s clear evidence that inflation is falling toward the 2% target,” Waller said on Wednesday. Data released in the next three weeks.”
While Biden threatened that lawmakers might not be able to meet the deadline to raise the debt ceiling, investor expectations for a June rate hike continued to rise. The interest rate futures market shows that the market believes that the possibility of raising interest rates in June is close to 30%, which was regarding 25% a month ago. Bond market swap contracts priced in a rate rise of as much as 12 basis points in June, the highest since the May 3 meeting.
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