The main Wall Street averages closed mixed this Tuesday, May 30, pressured by concern about US lawmakers who oppose an agreement to raise the debt ceiling, but driven by a rise in shares of nvidiawhich briefly propelled the chipmaker into the rare club of $1 trillion companies.
The index S&P 500 it closed stable at 4,205.52 units; while the Industrial Average Dow Jones fell 50.49 points, or 0.2%, to 33,042.85 units and the Nasdaq Composite it advanced 41.74 points, or 0.3%, to 13,017.43 units.
“I wouldn’t be surprised if they failed the first vote and had to vote again,” said Sam Stovall, chief investment strategist at CFRA in New York. “However, I strongly believe that a debt ceiling deal will be approved before the June 5 deadline.”
Nvidia Corporation cut profits after hitting an all-time high, following the company’s announcement that it expects increased demand for its artificial intelligence chips, which drive the sensation ChatGPT and other applications. If it closes above $404.86, Nvidia would join six other companies valued at $1 trillion or more.
The rise in interest rates of the Federal Reserve are taking a toll on economic growth and corporate earnings, leaving about 20 companies to drive a total return of 10% for the S&P 500 for the year, said Anthony Saglimbene, chief market strategist at Ameriprise Financial.
“Having the debt ceiling legislation approved is not going to remove the other obstacles that still exist in the market,” he added.
Consumer confidence rose more than expected in May, which could fuel expectations that the Federal Reserve will raise rates further to combat inflation.
Preliminary agreement on the US debt ceiling
The president of United States, Joe Bidenand the Republican leader of the House of Representatives, kevin mccarthysigned an agreement on Sunday to temporarily suspend the debt ceiling and limit some federal spending.
The House Rules Committee said it will meet to discuss the bill. Though several far-right Republican lawmakers have said they will oppose it, in a sign the bipartisan deal could face a rocky road through Congress.
McCarthy said Tuesday the deal should be “easy” for Republicans to vote on and likely to pass, but some right-wing lawmakers said they opposed the bipartisan deal.
Source: Ambito
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