US stock markets post losses
Wall Street stays in the doldrums
May 31, 2023, 11:01 p.m
The week-long US debt dispute is set to come to an end – but as long as the compromise is not in the towel, traders on Wall Street will keep a low profile. The US stock markets closed in the red. Among other things, auto parts suppliers let springs.
Before a decisive vote in the US debt dispute, the US stock exchanges went diving on Wednesday. The Dow Jones Index the standard values closed 0.4 percent lower at 32,908 points. The tech-heavy one Nasdaq fell 0.6 percent to 12,935 points. The broad one S&P 500 lost 0.6 percent to 4179 points.
The argument about the Raising the debt ceiling, which has kept the stock exchanges in suspense for weeks, is likely to receive the necessary votes there, according to the latest statements from a representative of the House of Representatives. “We’ll get the votes tonight. It’ll go through,” Republican Tom Emmer said. Then the draft would go to the Senate. “All indications are that the deal is going through, but there are headlines about some congressmen opposing it,” said Joe Saluzzi, manager at Themis Trading. Until everything is in the towel, the nervousness will remain. Also a surprising one Decline in the official Purchasing Managers’ Index of the manufacturing sector (PMI) in China had clouded the mood on the financial markets worldwide.
Meanwhile, the Department of Labor’s Job Vacancy and Labor Turnover Survey (JOLTS report) showed that the Number of vacancies in the US increased unexpectedly in April. “The reality is we’re not past that inflationary moment and that means the Fed isn’t done yet, they will hike rates in June and probably again after that,” said Phil Blancato, chief executive of wealth manager Ladenburg Thalman Asset Management in New York.
On the other hand, there were increasing signals from the management level of the US Federal Reserve that point to an interest rate pause in June. On Wednesday, influential Fed Chair Philip Jefferson said such a pause after the series of hikes would allow policymakers to look at more economic data. Later, the central bank could then decide what additional tightening of monetary policy was still necessary. The US economic report Beige Book by the Federal Reserve (Fed) hardly played a role in the stock market. According to the Fed, US economic activity has hardly changed in the past few weeks. However, the Fed announced that the outlook was darkening.
Profit taking at Nvidia
The tech values fell Hewlett Packard after disappointing figures by a good six percent. Customers affected by inflation spent less on the company’s personal computers, causing sales to fall short of analysts’ expectations. At Nvidia investors cashed in. The chip manufacturer’s papers fell 5.7 percent. Thanks to the growing demand for chips due to the boom in artificial intelligence (AI) a la ChatGPT, the market value broke the sound barrier of one trillion dollars on Tuesday.
Investors punished Advance Auto Parts after a scaled-down annual target. The shares of the auto parts seller collapsed by 35 percent. The competitors also got caught up: shares of Genuine Parts fell by more than five percent, car zone lost 2.8 percent and O’Reilly Automotive fell by 2.7 percent.
intel increased by almost five percent. CFO David Zinsner said at TD Cowen’s industry conference that sales for the second quarter were at the high end of the guidance range, approaching just under $12 billion to $12.5 billion.