The New York Stock Exchange descended on Monday, May 5, breaking the nine -day grocery store, pushed by the collapse of the energy sector and the caution again of the investment sector, while the operators await an update on the commercial agreements, as well as the decision of the Fed scheduled by the end of this week.
In this context, the Dow Jones index of industrialists dropped 0.24% to 41,219.14 points; The S&P500 lost 0.62% to 5,651.20 points and the Nasdaq Composite showed 0.74% to 17,844.24 points.
Trump: Possible updates on trade agreements this week
Investors closely follow the commercial agreements this week after President Donald Trump declared to the press on Sunday, “that agreements with some business partners could very well announce this week.”
Optimism in the commercial field has been increasing in recent weeks after China announced that it was considering an offer to discuss the high tariffs of 145% imposed by Trump. Beijing responded to the measure with 125% tariffs on US imports.
Wall Street: What happened to some of the actions?
The actions of the large oil companies Exxon Mobil and Chevron skidded 2.6% and 2.1% respectively, due to the pressure on oil prices when the organization of oil export countries and its allies, a group known as the OPEC+ that represents most of the world production of oil, decided to increase production from June.
The announcement caused a drop in oil prices on Monday. Brent oil futures for June fell 1.8%, to US $ 60.22, in the last operations.
Berkshire Hathaway collapsed more than 5% after the investment conglomerate registered a 14% drop in its operational profits of the first quarter compared to the previous year, to US $ 9,640 million, due in large part to insurance losses. related to devastating forest fires in California.
Skechers USA INC rose more than 24.4% after the footwear company agreed to be privatized by 3G Capital in
An agreement of U $ S63 per share. The actions of Zimmer Biomet Holdings collapsed 11.7% after the update of their benefits forecasts, which were below the expectations of the analysts. Despite reporting benefits of the first quarter slightly higher than estimates, the medical device manufacturer reviewed its benefit forecast per action (BPA) for the entire 2025, citing the impact of its recent acquisition and possible tariffs.
Wells Fargo Dixit “It’s time to reconsider the AI market”
After a setback in artificial intelligence actions this year (29%), Christopher Harvey of Wells Fargo said Monday that it could be the time when investors invest again in this sector.
In a note Harvey wrote that “The fall of the year to date has revealed value for investors in AI”referring to infrastructure and services providers that drive the AI ecosystem. “Group’s risk-re-re-rispage relationship today is much more
Attractive that a year ago “;, he said. Harvey compared the current investment cycle with the opportunity of 2022 in communication services actions, highlighting the solid foundations and long -term potential.
“We continue in a lasting investment cycle in AI,” he said and added that the demand continues to exceed the supply, “as observed in the latest results of Microsoft and the finishing investment plans.”
“It is not the usual technological cycle”Harvey said. Unlike the Puntocom bubble, capital spending in the current one is driven by “profitable companies with solid balances”; instead of speculative companies with weak finances.
Referred to a “Symbiotic iterative cycle” Between infrastructure and AI applications, backed by national strategic importance and faster products renewal cycles.
Investments in AI also seem more resistant to the recession. “The construction of data centers associated with the capital investment of Hiper Scale has delivery deadlines of several years,” said Harvey, arguing that companies linked to AI are “less exposed to a possible recession”;. He expects capital spending to replace operating costs more and more as the AI drives productivity.
Source: Ambito
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