Investors Await Debt Ceiling Negotiations as Dow Jones Closes Up for Second Consecutive Day

Investors waited for U.S. President Biden and House Speaker McCarthy to restart debt ceiling negotiations.Dow JonesIt closed black by more than 140 points, closing black for the second consecutive trading day.

With the escalation of the US-China technology war, Micron fell by more than 2%, but Tesla surged higher,That fingerIt rose 0.5 percent, its highest closing level since August last year.

On the political and economic front, with less than 10 days left until the U.S. debt defaults, House Speaker Kevin McCarthy said before a meeting with U.S. President Joe Biden later on Monday: “We firmly believe in what we are negotiating now. on the right path.”

Biden returned to the United States on Sunday, cutting his trip to Asia short after a summit of G7 leaders.

Uncertainty over the Federal Reserve’s interest rate policy actions hangs over the market, with traders pricing in about an 80% chance of the Fed keeping interest rates unchanged in June, according to the Chicago Mercantile Exchange’s (CME) FedWatch tool. Allows the Fed to assess the progress of its actions to date.

James Bullard, the eagle king of the Federal Reserve and president of the Federal Reserve Bank of St. Louis, said that the possibility of a US economic recession is exaggerated. A recession is not his basic forecast for the US economy. He expects to raise interest rates twice this year.

Fed Chairman Jerome Powell is open to keeping interest rates unchanged in June. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, expressed support in principle for a pause in rate hikes in June.

The performance of the four major indexes on Monday (22nd):

Focus stocks

The five kings of technology were mixed. Amazon (AMZN-US) down 1.07%; Meta (META-US) rose 1.09%; Apple (AAPL-US) down 0.55%; Alphabet (GOOGL-US) rose 1.87%; Microsoft (MSFT-US) rose 0.89%.

Dow JonesComponent stocks generally fell. Nike (OF THE US) down 3.99%; Po Kiu (PG-US) fell 2.62%; Coca-Cola (KO-US) down 2.1%; McDonald’s (MCD-US) fell 2.1%; 3M (MMM-US) up 2.71%

fee halfMore than half of constituent stocks were higher. AMD (AMD-US) rose 2.06%; Huida (NVDA-US) down 0.28%; Micron (MU-US) down 2.85%; Applied Materials (AMAT-US) down 0.32%; Texas Instruments (TXN-US) rose 0.44%; Qualcomm (QCOM-US) fell 0.55%.

Taiwan ADR led by UMC. TSMC ADR (TSM-US) down 0.93%; ASE ADR (ASX-US) rose 1.22%; UMC ADR (UMC-US) down 2.35%; Chunghwa Telecom ADR (CHT US) fell 1.53%.

Corporate News

Micron (MU-US) dived 2.85 percent to $66.23. China’s State Internet Information Office announced last Sunday (21st) that Micron’s products sold in China have serious cybersecurity risks, and operators of China’s key information infrastructure should stop purchasing Micron products. However, the Cyberspace Administration of China did not detail the specific risks, nor did it specify which Micron products were affected.

Tesla (TSLA-US) surged 4.85% to US$188.87 per share on heavy volume on Monday. Tesla is offering discounts of more than $1,300 on some Model 3 models in U.S. inventory, and analysts are bullish on Tesla offering incentives to clear inventory.

Meta (META-US) rose 1.09 percent to $248.32 a share. European privacy watchdog fines Meta for record $1.2 billion transfer of EU user data to USEUR ($1.3 billion) fine, the largest EU privacy fine ever imposed, and Meta intends to appeal the ruling, while stressing that there was no immediate disruption to Facebook’s operations in Europe.

Chevron (CVX-US) fell 1.80 percent to $152.44 a share. PDC Energy (PDCE-US) soared more than 7 percent to $69.82 a share. Chevron is buying independent U.S. exploration and production company PDC Energy in a $7.6 billion all-stock deal, including debt, to add new drilling capacity to its U.S. oil and gas reserves.

The world’s largest semiconductor equipment manufacturer Applied Materials (AMAT-US) closed down 0.32 percent at $126.55 a share. Applied Materials plans to spend 4 billion US dollars to set up a chip research center in Silicon Valley, which will combine industry talents such as TSMC to accelerate the progress of the manufacturing process.

ford (F-US) edged down 0.17% to $11.63 per share. Ford held its annual investor meeting on Monday, and the company forecast new-vehicle prices could fall 5 percent this year and next due to fierce dealer competition.

Wall Street Analysis

Chris Low, chief economist at FHN Financial, judged: “The debt ceiling issue is very stressful now, but when Congress raises the debt ceiling, investors’ attention will return to the overall economy and the Fed.”

Michael Wilson, a well-known short seller on Wall Street and JPMorgan Chase strategist, warned: “Investors should not be fooled into thinking that the rebound in US stocks is the beginning of a new round of bull market. There is too much fundamental and technical evidence that there will be problems in the future market.”

The numbers are all updated before the deadline, please refer to the actual quotation