2023-05-23 14:08:11
Around 1:55 p.m. GMT, the Dow Jones crumbled by 0.18%, the Nasdaq index yielded 0.16% and the broader S&P 500 index dropped 0.22%.
“Despite comments last night from Speaker (Joe) Biden and Speaker of the House of Representatives (Kevin) McCarthy, who called their discussions ‘productive’, the market remains concerned regarding the extreme positions of each camp,” he said. commented Quincy Krosby, of LPL Financial.
If Kevin McCarthy estimated, at the end of his interview with the Head of State, that the exchanges had been the “best since we have been discussing”, no significant progress seems to have taken place, less than ten days from the deadline. to avoid a US default.
“Operators seem tired of all this talk and the lack of action to raise the debt ceiling,” added Patrick O’Hare of Briefing.com in a note.
Even if Wall Street does not show excessive tension for the moment, some indicators have already turned orange.
The VIX index, which measures market volatility, rose 3.8% on Tuesday.
The nervousness can also be read on the bond market, where the yield on US government bonds at 3 months rose to its highest level in 22 years, at 5.29%.
Rates also tightened on long-term maturities. The yield on 10-year US government bonds was 3.73%, once morest 3.71% the day before closing.
“The debt ceiling psychodrama has been a recurring disturbance lately, but there are other elements to add, such as the specter of further rate hikes” by the US central bank (Fed), explained Patrick O’ Hare.
Added to this is Wall Street’s inability to break through some important technical thresholds, following the S&P 500 and Nasdaq recently posted multi-month highs at the close.
“The 4,200 point threshold is difficult for the S&P 500, but we are seeing an influx (on the equity market), in particular from alternative funds (hedge funds)”, underlines Quincy Krosby, for whom an agreement on the debt might allow instead of New York to break down these resistances.
On the side, the DIY chain Lowe’s (+ 1.77%) benefited from better than expected results, even if the group lowered its annual forecasts, this in order to take note of “lower demand than expected for expenditure non-essential,” said CEO Marvin Ellison.
The major retailers are considered a barometer of consumption in the United States, the heart of the American economy.
Elsewhere on the stock exchange, semiconductor manufacturer Broadcom (+0.98%) was supported by the announcement of a multi-billion dollar contract with Apple, to which it will supply elements for connectivity to the 5G network.
The SEO and evaluation platform for shops and restaurants Yelp climbed (+9.55%). The Wall Street Journal reports that the activist investment fund TCS Capital Management, which controls 4% of the capital, will ask the management of the social network to study a possible sale to a technology group.
Already well oriented Monday, the regional bank PacWest was once more sought (+ 19.55%). The course of the Californian establishment has more than tripled (+230%) since its lowest point in early May, when it appeared to be a possible victim of the banking crisis.
Other regional brands targeted recently by investors raised their heads, like Bank of Hawaii (+3.28%) or Zions (+4.56%).
1684853867
#Wall #Street #opens #tired #debt #crisis
