relief and skepticism
Debt dispute won’t let go of Wall Street
05/30/2023, 10:47 p.m
On the first day after the long Pentecost weekend, the US indices close with different signs. Technology stocks continued Friday’s rally and added a bit more gains. The provisional agreement in the debt dispute provides relief, with a residual skepticism.
US stock markets failed to find a common direction on Tuesday. The Dow Jones Index the standard values closed 0.2 percent lower at 33,042 points. The tech-heavy one Nasdaq however, advanced 0.3 percent to 13,017 points. The broad one S&P 500 closed almost unchanged at 4205 points. The announcement of a new investment by the US chip manufacturer provided support Nvidia. According to the company, the group is building one of the world’s fastest supercomputers in Israel in order to satisfy the boom in AI applications such as ChatGPT. The shares of the graphics chip specialist rose by almost three percent.
“If the AI trend is sustainable, then the immediate demand will be for chips and computing power, and that’s where Nvidia is the flagship at the moment,” said Thomas Hayes, chairman of private equity firm Great Hill Capital. Year-to-date, Nvidia stocks are already up nearly 180 percent, more than four times the Philadelphia semiconductor index. It was only in the first half of 2001 that Nvidia papers went up even more steeply. Also at intel grabbed investors. The share gained 3.4 percent.
There remains a residual risk
At the same time, investors were hoping that Congress would approve the preliminary agreement in the dispute over raising the US debt limit on Wednesday, thereby preventing the US from defaulting. “Except for a few deviations in the vote, investors are currently firmly assuming that the draft negotiated between President Biden and his Republican negotiating partner McCarthy will also be passed tomorrow,” said Konstantin Oldenburger, analyst at broker CMC Markets. “But there is also this certain residual risk, because nothing is done until it is done.”
Concerns about further developments in Washington and the uncertainty before the next meeting of the oil cartel Opec+ on Sunday weighed on the oil prices. The North Sea crude oil type Brent and the light US type STI became cheaper by more than four percent to 73.85 and 69.79 dollars per barrel (159 liters). Investors were puzzled as to whether OPEC would cut its production volumes again. In April, the Organization of the Petroleum Exporting Countries surprisingly announced a production cut of 1.16 million barrels a day from May for the remainder of the year. A warning from the Saudi Arabian Energy Minister that oil prices will continue to fall has fueled speculation that cuts will be renewed. However, Russia does not expect any further measures.
“April’s decision took the market completely by surprise. This time, investors are extremely cautious and are waiting for the final decision to be announced,” wrote experts at Hong Kong-based investment adviser Haitong Futures. Leave the oil values chevrons and exxon almost one percent feathers each. papers from ford increased by a good four percent after Jefferies had upgraded the carmaker’s shares to “buy”.