(New York) The New York Stock Exchange ended without direction on Tuesday pending a green light from the US Congress on the US debt ceiling agreement.
The Dow Jones index fell 0.15% to 33,042.78 points while the S
On the New York Commodity Exchange, crude oil prices returned US$3.21 from Friday to end at US$69.45 a barrel, while natural gas fell US9 cents from Friday. to Friday to reach US$2.33 per million BTU.
Gold was up US$14.00 from Friday to US$1,977.10 an ounce and copper was down US$2 cents from Friday to 3, US$66 per pound.
The event of the day was the rise of Nvidia, the manufacturer of ultra-powerful processors sought after for AI, within the very closed circle of groups which are worth more than 1000 billion dollars on Wall Street.
At the opening, the Santa Clara group exceeded this threshold for the first time in its history, the action, which took 175% since the beginning of the year, passing well above 404.86 dollars for cross this limit.
The company has thus joined the five behemoths of Wall Street whose stock market valuation goes beyond 1,000 billion. These are four American technology giants (Apple, Microsoft, Amazon, Alphabet) and the Saudi oil group Saudi Aramco.
In the second part of the session, however, Nvidia reduced its sails and fell below this symbolic bar to close up 2.99% at 401.11 dollars.
“NASDAQ led the way with Nvidia joining the mega-valuation club […], but the spotlight remains on Washington and the House of Representatives,” said Edward Moya of Oanda.
The Lower House is due to vote Wednesday on the draft debt deal reached between the White House and congressional leaders. The Senate could vote this weekend.
In broad outline, the agreement sealed this weekend raises the public debt ceiling of the United States for two years. This is currently set at $31.4 trillion.
It provides for a $10 billion cut in funds allocated to tax services to modernize and imposes new conditions for benefiting from certain social assistance.
The vote in Congress is not certain, however, and the text is the subject of fierce resistance from some elected officials on both sides.
“It won’t take much to derail the tentative deal, but optimism is in order,” with investors “believing Congress isn’t going to jeopardize the economy by triggering a preventable catastrophe,” continued Ms. .Moya.
The deal must be signed by June 5, after which, according to Treasury Secretary Janet Yellen, the United States will run out of cash to pay its bills.
On the macroeconomic front, consumer confidence in the United States fell in May to its lowest level since November. This slightly darkened the indices which had started off on a better footing at the start of the session.
On the value side, Tesla climbed 4.14% to 201 dollars as the boss of the electric vehicle manufacturer traveled to China where he met the Chinese Minister of Foreign Affairs.
Ford gained 4.09% to $12.59 after a favorable analyst rating.
The Kohl chain’s stock fell 5.14% to $19 after facing, like its rival Target last week, a volley of protests on social media because the brand sells items celebrating the community LGBT and Pride.
In the bond market around 4:20 p.m. EST, yields eased to 3.69% from 3.79% on Friday for 10-year Treasuries.
The Toronto Stock Exchange closed Tuesday down more than 200 points, dragged down by falling oil prices and losses in the energy, financials and base metals sectors, while major American indices ended in scattered order.
The composite index S
“It’s really just a continuation of the trends we’ve seen over the past few weeks,” observed Stephen Duench, vice president and portfolio manager at AGF Investments.
Investors continue to look to big tech names, especially those involved in artificial intelligence, Duench said.
“It’s like a race to (see) the size and narrowness of the top of the market. »
Chipmaker Nvidia joined other giants like Alphabet, Apple and Microsoft in hitting a market valuation of US$1 trillion, after its earnings report last week beat expectations, sending its stock price soaring. Shares of the company gained nearly 3% on Tuesday.
Meanwhile, U.S. officials reached an agreement on the debt ceiling over the weekend, ending a period of uncertainty that weighed on markets as the deadline approached — even though this agreement has yet to be adopted.
Although there is some “gradual optimism” about the debt ceiling agreement, which would likely lead to a rally in the bond market, Duench said he expects more positivity in the markets. Tuesday.
In Canada, the Toronto Stock Exchange saw a broad-based decline, fueled by energy stocks, as the price of oil retreated below US$70.
“The TSX has been a significant laggard over the past few weeks and months,” Duench noted.
All eyes will be on the Organization of the Petroleum Exporting Countries (OPEC) coalition and partners this weekend, Duench said. The alliance is due to meet on June 4 and speculation is rife about possible production cuts.
Investors are also awaiting U.S. wage data on Friday, Duench said, as uncertainty continues to loom in the market ahead of the Federal Reserve’s next interest rate decision.
A new report from the United States on Tuesday saw consumer confidence decline in May, but it still did better than economists expected, leaving the market with a “messy” batch of data, Duench said.
“I wouldn’t say it was completely catastrophic,” he said.
In the currency market, the Canadian dollar traded at an average rate of 73.54 US cents, down from 73.57 US cents on Monday.
On the New York Commodity Exchange, crude oil prices returned US$3.21 from Friday to end at US$69.45 a barrel, while natural gas fell US9 cents from Friday. to Friday to reach US$2.33 per million BTU.
Gold was up US$14.00 from Friday to US$1,977.10 an ounce and copper was down US2 cents from Friday to 3, US$66 per pound.
