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Wall Street ends mixed as investors await debt ceiling talks


NEW YORK, May 22 (Reuters) –

Wall Street ended mixed on Monday, boosted by Alphabet and Meta Platform, while some investors refrained from placing big bets ahead of a new round of talks on raising the US debt ceiling. Ky.


US President Joe Biden and top Republican congressman Kevin McCarthy are scheduled to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the US could face a unprecedented default.

“Basically, investors are saying, ‘We give at least a 60:40 chance they’ll get a deal in time,’” said Sam Stovall, chief investment strategist at CFRA Research.

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“A deal could simply extend, kick it off to decide on the debt ceiling when they also discuss the budget in September.”

According to preliminary data, the S&P 500 rose 0.72 points, or 0.02%, to 4,192.70, while the Nasdaq Composite added 62.61 points, or 0.50%, to 12,720.51. The Dow Jones Industrial Average fell 139.62 points, or 0.42%, to 33,287.01.

Comments from Fed President St. Louis James Bullard on Monday that the Federal Reserve may still need to raise interest rates by half a point this year pushed the US dollar higher.

Investors will be looking for monetary policy clues from a series of Fed speakers and this week’s key data points such as April personal consumption expenditures (PCE) and durable goods. .


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The PCE index, the Fed’s preferred inflation gauge, is due on Friday.

Tech-related stocks lifted the market, with gains at Alphabet Inc and Meta Platforms Inc.

“As the debt ceiling drama mounts, large-cap tech stocks have become the new favorite defensive trade on Wall Street,” said Edward Moya, senior market analyst at OANDA.

Apple Inc fell after Loop Capital downgraded the iPhone maker’s stock from “buy” to “hold,” and its rating was cut for the first time in five months according to Refinitiv data.

In a move seen as escalating US-China trade tensions, Beijing has banned chipmaker Micron Technology Inc from selling memory chips to key domestic industries, sending its shares down. .

Banking stocks in the region were lifted by news that PacWest Bancorp had agreed to sell a portfolio of 74 real estate construction loans to a subsidiary of Kennedy-Wilson Holdings Inc.

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Shares of Pacwest rallied, while other regional lenders such as Western Alliance and Comerica Inc all rose.

Shares of larger lenders were subdued, with JPMorgan Chase & Co lower though the company said its net interest income would rise by $3 billion as interest payments increase from the purchase. Bank of the First Republic failed this year.

Shares of Greenhill & Co have doubled after Mizuho Financial Group Inc. will buy the US M&A consulting firm for $550 million including debt.

Japan’s No. 3 lender has its eye on a larger share of the world’s largest pool of investment banking fees.

Chevron Corp, a Dow component, fell after the oil group said it would acquire PDC Energy Inc in an all-stock transaction for $7.6 billion, including debt.

(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru and Saeed Azhar in New York; additional reporting by Sinead Carew; Editing by Dhanya Ann Thoppil, Maju Samuel and Richard Chang)


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