PARIS (Reuters) – The New York Stock Exchange opened in mixed order on Tuesday, the positive trend being supported by Nvidia, while the pulls around the raising of the ceiling of the American debt fuel a measured hope.
In the first exchanges after an extended weekend due to “Memorial Day”, the Dow Jones index lost 18.95 points, or 0.06%, to 33,074.39 points, while the Standard & Poor’s 500, more wide, rose 0.51% to 4,227.02 points.
The Nasdaq Composite took 1.13%, or 146.83 points, to 13,122.52.
After weeks of negotiations between the White House and the Republicans, the two camps reached a budget agreement on Sunday which suspends the debt ceiling of the United States until January 1, 2025. This text, which will be submitted to the vote of Congress before June 5, must be examined this Tuesday at 7:00 p.m. GMT by the House Rules Committee. A handful of elected Republicans, however, said Monday they were ready to oppose the agreement, fueling uncertainty as to the final outcome of the text.
The markets nevertheless want to believe that a default by the United States is now unlikely, according to several experts, including Christopher Wong, strategist at OCBC.
Reflecting this optimism, CDS (“credit default swaps”) to hedge against a risk of short-term default by the United States on its debt fell further on Tuesday after falling below 200 basis points on Monday.
At the same time, the ten-year Treasuries bond yield fell nearly eight basis points to 3.752%.
The fall in rates benefits the compartments of new technologies (+1.66%) and that of semiconductors (+2.08%).
Nvidia, which made a series of announcements on technology products and partnerships in artificial intelligence (AI) on Monday, took 4.67%, becoming the first semiconductor company to exceed the 1,000 billion threshold. market capitalization dollars.
In its wake, stocks related to AI and computer chips, such as Microsoft, Advanced Micro Devices (AMD), Marvell Technology and Intel advanced from 0.41% to 1.62%.
Tesla jumped 4.50% as its boss, Elon Musk, arrived in Beijing for a visit during which he is due to meet senior Chinese officials, sources say.
Ford, up 5.0%, was lifted by Jefferies’ “buy” recommendation.
On the downside, the oil groups Chevron (-1.19%), Exxonmobil (-1.26%), Occidental Petroleum (-0.59%) and Devon Energy (-1.09%) suffer from uncertainties about the new quotas of production of OPEC+ which meets on June 4.
(Written by Claude Chendjou, edited by Blandine Hénault)
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