Wall Street: Caution ahead of Senate vote on debt

(CercleFinance.com) – Wall Street fell on Wednesday morning, as investors limited their initiatives while awaiting the Senate vote on the plan to raise the US debt ceiling.

At the end of the morning, the Dow Jones fell 0.8% to 32,771.8 points, while the Nasdaq Composite dropped 0.7% to 12,924.2 points.

US Senators are expected to vote on the budget compromise reached between President Joe Biden and House of Representatives speaker Kevin McCarthy this evening, with the aim of avoiding what could be the first-ever default. the United States.

The green light from Congress promises to be strewn with pitfalls, however, and the project will have to bring together a large coalition of Republicans and Democrats, while a good number of parliamentarians have expressed their dissatisfaction with the plan.

It also remains to be seen what reception the markets will give to the epilogue of the case: a favorable vote could breathe new momentum into equities, but also generate volatility by strengthening the attractiveness of the debt market.

On the bond compartment, the ten-year American is shrinking for the moment by four points to return to around 3.6580%.

While no macroeconomic indicator is on the agenda, business news is a bit livelier.

Apple rose 0.5% on promising analyst comments just days before the opening of its annual developer conference (WWDC).

GE HealthCare rose 0.4% as the Nasdaq announced that the stock would enter the Nasdaq-100 index on Wednesday June 7, replacing payment technology provider Fiserv.

HPE fell 6% despite higher profit forecasts for the current fiscal year when it released its quarterly results on Tuesday evening.

Nvidia is also suffering (-3.2%) profit-taking after making gains of 175% since the start of the year, although BofA analysts today raised their target on the stock, to raise it to $500.

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