“U.S. Stocks Continue to Fall Amid Risk of Debt Default and Political Deadlock”

U.S. stocks continued to fall on Wednesday (24th) amid concerns over the risk of a U.S. debt default as the deadlock in debt ceiling negotiations remained unresolved.Dow JonesIt closed down more than 255 points, extending the decline for the fourth trading day.

Industrials and financials were under heavy selling pressure, with regional banks resuming selling pressure. As international oil prices continued to be supported by expectations of production cuts by the Organization of the Petroleum Exporting Countries and Russia and other oil-producing allies (OPEC+), energy stocks bucked the trend and closed in red for the second day in a row.

In terms of politics and economy, U.S. Treasury Secretary Yellen reiterated on Wednesday that the U.S. Treasury Department may run out of cash as soon as June 1, but it is difficult to determine the exact day when it will run out of cash. She has seen some stress in financial markets as concerns grow over the possibility of the first U.S. default in history.

The Speaker of the U.S. House of Representatives McCarthy said that he and U.S. President Biden still have great differences on many issues to break the deadlock on the debt ceiling. The Republican Party has made many concessions and does not want a debt default. Talks with Democrats made progress during Wednesday’s talks.

Minutes of the Fed’s May interest rate meeting showed that officials were divided on whether to support further rate hikes, with Fed officials emphasizing their reliance on data and an unlikely rate cut this year.

The minutes mentioned that many participants emphasized the need to retain options after the May meeting, with several saying that further tightening may not be needed if the economy develops as expected.

White House National Security Council spokesman John Kirby (John Kirby) revealed on Monday (20th) that the White House will have a direct dialogue with China on China’s sanctions against Micron, and it is believed that this will not have a major impact on the relationship between the United States and China.

The performance of the four major indexes on Wednesday (24th):

• US stocksDow Jones IndexIt fell 255.59 points, or 0.77%, to close at 32,799.92.
• NasdaqThe index fell 76.08 points, or 0.61 percent, to close at 12,484.16 points.
• S&P 500 IndexIt fell 30.34 points, or 0.73%, to close at 4,115.24.
• Philadelphia SemiconductorThe index fell 53.35 points, or 1.68 percent, to close at 3,124.09.

Focus stocks

The five kings of technology were mixed. Amazon (AMZN-US) up 1.53%; Meta (META-US) up 1.00%; Apple (AAPL-US) rose 0.16%; Alphabet (GOOGL-US) down 1.35%; Microsoft (MSFT-US) fell 0.45%.

Dow JonesMore than half of the constituent stocks closed black. Salesforce (CRM-US) rose 1.17%; 3M (MMM-US) down 3.68%; Walgreens Boots (WBA-US) down 2.56%; IBM (IBM-US) down 1.95%; Traveler (TRV-US) fell 1.85%.

fee halfConstituent stocks are likely to fall. Analog Devices (ADI-US) plummeted 7.83%; Huida (NVDA-US) down 0.49%; Applied Materials (AMAT-US) down 1.97%; AMD (AMD-US) rose 0.14%; Micron (MU-US) rose 0.79%; Texas Instruments (TXN-US) down 1.57%; Qualcomm (QCOM-US) fell 0.52%.

Taiwan stock ADR received more black. TSMC ADR (TSM-US) down 0.34%; ASE ADR (ASX-US) down 0.82%; UMC ADR (UMC-US) rose 0.25%; Chunghwa Telecom ADR (CHT US) fell 0.44%.

Corporate News

Huida (NVDA-US) fell 0.49% to $305.38 per share, before surging more than 26% after hours. Huida’s latest financial report was successful. As of the end of April, the adjusted net profit per share reached US$1.09, higher than the market’s expected US$0.92; revenue fell 13% year-on-year to 7.19 billion yuan, compared with the expected 6.52 billion yuan.

Huang Renxun, president of Huida, expects that the revenue in the second quarter is expected to reach 11 billion yuan, mainly due to the strong demand for artificial intelligence (AI) chips in the market, especially in Asian data centers. This revenue forecast far exceeds Wall Street The expected 7.15 billion yuan.

microsoft (MSFT-US) slipped 0.45 percent to $313.85 a share. Britain’s decision to block the merger between Microsoft and Activision Blizzard has caused dissatisfaction between the two companies. Microsoft is rumored to appeal the CMA’s decision through the UK’s Competition Appeals Court (CAT).

Netflix (NFLX-US) rose 2.49% to $364.85 per share. The streaming video platform Netflix has cracked down on the use of shared accounts in order to restore the company’s performance, and is currently expanding to Taiwan and Hong Kong.

apple (AAPL-US) received a dividend of 0.16% to $171.84 per share. Apple is expected to unveil its long-awaited hybrid augmented reality (AR) and virtual reality (VR) headset at its annual Worldwide Developers Conference (WWDC), which runs from June 5-9. And 15-inch MacBook Air and other products, and launched iOS 17, macOS 14, watchOS 10 software systems.

Meta (META-US) rose 1 percent to $249.21 a share. The layoffs in its business and operations arm, the last round of layoffs at the company, were at the top of its main market, India (Avinash Pant, director of marketing, and Saket Jha Saurabh, director and head of media partnerships), according to two people with direct knowledge of the matter. Also on the dismissal list.

Wall Street Analysis

Deutsche Bank analyst Jim Reid pointed out: “There are indeed concerns that this may continue forever, investors are gradually gearing up, and some people are talking about whether a short-term extension is needed now to solve the debt limit problem, but for now, McCarthy continues. Downplaying that possibility. So investors continue to wait nervously, with no signs of a deal yet.”

Adam Sarhan, chief executive of 50 Park Investments, said: “With the June 1 deadline approaching, the market is still falling and retreating due to overbought conditions and growing concerns about adverse debt ceiling outcomes. Sell ​​first, ask questions later, that’s what we might see.”

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