Wall Street indices gave profits on Friday, June 20, since the weakness of Chips actions counteracted the statements of a senior Federal Reserve official requesting to cut interest rates at the next Fed meeting.
Wall Street was closed Thursday by the Juneteenth holiday, and investors were cautious during the wheel, trying not to make great bets in the last of the week.
In this context, the Dow Jones index of industrialists rose 0.08% to 42,206.82 points; The S&P500 lost 0.26% to 5,965.49 points and the Nasdaq Composite depreciated 0.51% to 19,447.41 points
Chips actions fell for the new US regulation for China.
Jeffrey Kessler, who directs the export control unit of the Department of Commerce, informed the main semiconductor manufacturers, such as semiconductor manufacturing taiwan Cancel the general exemptions that currently allow them to send American teams for the manufacture of chips, their factories in China, without having to request licenses separately, according to the Wall Street Journal.
According to the information, the possible change of politics is part of the broader efforts of the Trump administration to restrict the access of American technology criticism of China.
If implemented, the measure could generate important disturbances both diplomatic and economic, shortly after the United States and China established a commercial truce in London.
White House officials declared that this measure would not represent a new commercial escalation, but would harmonize the licensing system for chips equipment with the existing Chinese system for rare earth materials. They added that the United States and China continue to advance towards the end of their London agreement.
“Chips manufacturers will continue to operate in China. The new mechanisms to comply with the regulations on these reflect the license requirements, which apply to other semiconductor companies that export to China and guarantee that the United States has an equitable and reciprocal process,” said a spokesman for the Department of Commerce.
What happened to some of the other Wall Street actions?
In the corporate sector, Apple (+1.7%) are looking for Indian companies to manufacture the necessary equipment to produce its flagship device, the iPhone, in the country, according to Business Standard on Thursday.
Apple previously announced its plans to drastically increase the production of its iPhone in India, especially due to the increase in US commercial tariffs in its manufacturing centers in China.
Accenture 7% collapsed since the reserves of the third fiscal quarter of the services and consulting firm did not reach expectations, even when the company raised its orientation on profits and reported better results than expected for the third quarter of fiscal year 2025.
Carmax He climbed 7% when the used car retailer reported profits from the first quarter that easily exceeded expectations, driven by higher sales volumes and solid gain margins.
The actions of Darden Restaurants They advanced 1% after the owner of Olive Garden increased his quarterly dividend by more than 7% and approved a new program of repurchase of shares of US $ s1mil million, even when he reported a drop in the operational income of the fourth quarter and provided a weaker perspective of the anticipated for its current fiscal year.
According to Chris Waller, the Fed should cut the rates at its next meeting
In the economic field, the manufacturing survey of the Fed of Philadelphia disappointed Friday, which suggests that the country’s manufacturing sector still has difficulties.
The Federal Reserve maintained interest rates without changes, as expected, Wednesday. Its president, Jerome Powell, mainly reiterated the Fed data -based approach for any future interest rate, while warning about the persistent risks of inflation derived from the Trump tariff agenda.
For his part, the governor of the Fed, Chris Waller, declared Friday at the CNBC Squawk Box that “any tariff inflation … I do not think it is so large and we should simply analyze it when establishing policies”, “the data of recent months have shown that tendential inflation looks quite well … we could have this in July.”
According to the White House Trump will decide “about the attack on Iran in two weeks”
Trump will resolve on the direct participation of the United States in the conflict between Israel and Iran in the next two weeks, according to the White House on Thursday.
The president of the United States was reluctant to the possibility of establishing nuclear conversations with Tehran, even when hostilities between Israel and Iran showed little signs of calming themselves. Although he publicly considered the possibility of directly attacking Iran, Trump also hinted at the possibility of establishing nuclear conversations with the Islamic Republic.
The conflict between Israel and Iran, who entered his eighth day on Friday, has kept Wall Street largely downward during the last week, since markets fear a broader conflict in the Middle East.
The sudden increase in oil prices, derived from the conflict, also generated concern for inflation driven by energy.
Source: Ambito
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