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NEW YORK (awp international) – Wall Street defaults were broadly resilient on Thursday, while tech exchange Nasdaq posted sharp gains. The focus of investor interest was once again the unresolved dispute over raising the debt ceiling. Republican negotiator Kevin McCarthy had recently expressed optimism that a negotiated solution could be reached between the White House and the Republicans. Time is of the essence: According to estimates by the US Treasury Department, the US is at risk of default at the beginning of June.
The Dow Jones Industrial closed down 0.11 percent at 32,764.65 points. The market-wide S&P 500 rose by 0.88 percent to 4151.28 points. On the Nasdaq, strong quarterly figures and an excellent outlook from the semiconductor group Nvidia caused a rally. The Nasdaq 100 rose to its highest level in over a year during trading, closing up 2.46 percent at 13,938.53 points.
Robust US economic data showed relatively little impact on prices. The economy started the year a little stronger than previously known. In addition, the price index for gross domestic product increased more significantly than expected in a quarterly comparison. In addition, the number of initial applications for unemployment benefits rose slightly in the past week. However, the value for the week before was revised significantly downwards.
On the company side, investors focused on Nvidia shares, because the specialist for graphics cards, servers and AI chips was convincing across the board. The sales target for the current quarter exceeded market expectations by almost 50 percent. Analysts then raised their price targets sharply; despite the fact that the share price has already more than doubled year to date.
The Nvidia shares jumped more than 29 percent to a record high in the course of trading and closed with a plus of a good 24 percent. With the unexpectedly strong quarterly figures and the surprisingly good outlook, Nvidia caused euphoria across the industry. The shares of the competitors AMD (+11.2%), Synopsys (+9.8%) and Applied Materials (+7.2%) also gained significantly in value.
Dollar Tree, on the other hand, fell 12 percent. The discounter lowered its profit outlook, blaming high inflation, which is dampening demand for higher-margin products.
Snowflake shares were even worse off, falling 16.5 percent. According to stockbrokers, the software company’s sales target for the current quarter was disappointing.
Metlife stocks rose 5.0 percent. The insurance company said it had signed a reinsurance deal worth more than $19 billion with pension and life insurer Global Atlantic and increased its share buyback program to $4 billion.
Dish Network shares have meanwhile risen by up to a good 19 percent and thus more strongly than at any time since 2020. Ultimately, they won 7.1 percent. The Wall Street Journal, citing people familiar with the matter, reported that the satellite TV provider was in talks to sell cell phone plans through online retailer Amazon.
The euro recovered somewhat in US trading from its sharp fall in European afternoon trading. The shared currency was last seen trading at $1.0722 after falling to $1.0707, its lowest level in just over two months. The European Central Bank (ECB) set the reference rate at 1.0735 (Wednesday: 1.0785) dollars. The dollar thus cost 0.9315 (0.9272) euros.
US government bonds fell significantly on Thursday. The futures contract for ten-year bonds (T-Note future) fell by 0.77 percent to 112.55 points. In return, the yield on ten-year paper rose to 3.82 percent./edh/men
2023-05-25 20:33:36
#Equities #York #Close #Dow #stable #Nasdaq #12month #high
