As the market continued to assess the possibility that the US Congress would pass the debt ceiling deal, US stocks closed mixed on Tuesday (30th), with the Dow Jones ending slightly lower and S&P 500 index closes flat, but still hovers at the highest level. since August last year, the Nasdaq and Feiban closed in the red at the same time, but the gains in late trading are converging.
Huida (NVDA-US) rose another nearly 3% on Tuesday, and its market value briefly touched US$1 trillion after the market opened. Buoyed by the strength of artificial intelligence (AI) stocks, the Nasdaq Composite Index once rose 1.4% in intraday trading, and the gains in late trading were converging, closing up 0.32% After reaching the highest level since last February, Fei Ban closed in the red by 0.1%.
US President Joe Biden and Speaker of the House Kevin McCarthy (Kevin McCarthy) reached an agreement in principle on raising the debt ceiling over the weekend, and the House of Representatives will vote on Wednesday (31st). Even if the two sides reach a preliminary agreement, some right-wing Republicans have indicated they will vote against it, which could face obstacles in the House of Representatives.
The 10-year US Treasury yield reversed after the weekend, falling to 3.692% at the time of writing, and the one-month US Treasury yield also fell from 5.496% to 5.224%.
Concerns about another rate hike from the Federal Reserve weighed on investor sentiment. Traders see a 68.8 percent chance the Fed will raise interest rates next month, according to the CME Group’s FedWatch tool.
Richmond Fed President Thomas Barkin said at an event that he is looking for signs of cooling demand and although inflation has slowed, it is still too high.
The market was also focused on the latest economic data. The US Institute of Economic Research reported on Tuesday that its index of consumer confidence fell to a six-month low in May, showing that confidence in the labor market and business outlook had slipped ahead of a debt limit deal.
The US Department of Labor is scheduled to release the non-farm payrolls report for May this Friday (2nd), revealing the resilience of the US economy as rising interest rates curb lending activity.
The performance of the four major US stock indexes on Tuesday (30th):
Focus stocks
The five kings of technology have their strengths and weaknesses. Apple (AAPL-US) rose 1.07%; Meta Platforms (META-US) rose 0.18%; Alphabet (GOOGL-US) fell 0.75%; Amazon (AMZN-US) rose 1.29%; Microsoft (MSFT-US) fell 0.50% .
Dow Jones components fell more than a rose. Merck (MRK-US) fell 1.71%; Baoqiao (PG-US) fell 1.53%; Visa (V-US) fell 1.5%; Nike (NKE-US) fell 0.92%; 3M (MMM-US) fell 0.91%; Kintor Heavy Industry (CAT-US) fell 0.9%; Salesforce (CRM-US) rose 1.59%; Intel (INTC-US) rose 3.41%.
The fee and stocks rose half components and half and half fell. Qualcomm (QCOM-US) rose 5.12%; Intel (INTC-US) rose 3.41%; Huida (NVDA-US) rose 2.99%; Broadcom (AVGO-US) fell 1.16%; AMD (AMD-US) fell 1.39% % ; Micron (MU-US) fell 3.03%; Marvell (MRVL-US) fell 3.22%.
ADRs of Taiwanese stocks have been discontinued. TSMC ADR (TSM-US) fell 1.19%; ASE ADR (ASX-US) fell 2.66%; UMC ADR (UMC-US) fell 3.12%; Chunghwa Telecom ADR (CHT-US) fell 0.20%.
Corporate News
NVDA (NVDA-US) briefly broke through the US$1 trillion mark on Tuesday, becoming the first chipmaker to join the “Trillion Dollar Club”. Some AI concept stocks continued their momentum, C3.ai (AI-US) rose 33.4% at the close, UiPath (PATH-US) rose about 6%,
Tesla (TSLA-US) closed up 4.14%, after reports that Tesla CEO Elon Musk’s private jet had arrived in China, Tesla rose 6% in the session, Musk’s latest cut. During his first visit to China in three years, according to Reuters, Musk will meet with senior Chinese officials and visit the Tesla factory in Shanghai.
Electric vehicle charging pile operator ChargePoint ( CHPT-US ) closed up 14.13%, and its stock price hit a two-month high. Analysts at Bank of America (BofA) are optimistic about the company’s solid leadership in the European and American charging markets, and its valuation is convincing, so they upgraded it to a “Buy” rating.
Energy stocks were generally under pressure as oil and gas prices fell. Devon Energy Corporation (DVN-US) closed up 2.31%, Diamondback (FANG-US) fell 1.15%, Chevron (CVX-US) and Exxon Mobil (XOM-US) fell about 0.6% and 0.9% respectively.
Economic data
- In April, the S&P Case-Shiller 20 US major city home price index fell 1.1% year-on-year, while the previous value increased 0.4% year-on-year
- The US Institute of Economic Research’s consumer confidence index was 102.3 in May, from 103.7 in the previous month
Wall Street Analysis
“I would not be surprised if the first vote fails, forcing Congress to vote again, but I strongly believe that the debt ceiling deal will be passed by June 5,” said Sam Stovall, CFRA’s chief investment strategist.
“Eventually, the market will overcome its concerns, and the debt ceiling issue is clearly one of them,” said Chris Barto, an investment analyst at Fort Pitt Capital. “But I think, to some extent, the market has priced in the possibility of a deal.”
“The Fed remains a focus for all investors,” said Brian Price, director of investment management at the Commonwealth Financial Network. “It’s a tug of war over the Fed’s possible actions: Will they raise rates one or two more, or stop. , and we’ll see what the inflation data looks like in the next few months.”
Gina Bolvin, president of Bolvin Wealth Management Group, believes the decline in consumer confidence could be a bullish indicator against the trend, and the next catalyst to move the market will be this week’s non-farm payrolls report.
All numbers are updated before the deadline, please refer to the actual quote
