NEW YORK (dpa-AFX) – The US stock markets are likely to be almost unchanged at the start of trading on Monday. The broker IG appraised the US leading index Dow Jones Industrial around three quarters of an hour before the start of trading at 33,810 points and thus 0.06 percent higher. The Nasdaq 100 was expected to rise 0.04 percent to 13,808 points.
NEU:
The Updated “Your Wealth Guide” – Which Stocks Beat Everything! Request here for free…
Stockbrokers pointed to the continued uncertainty of investors with regard to the US debt ceiling, for which there is still no solution in sight despite the approaching deadline. A potential default by the world’s largest economy in early June could have significant repercussions for many other regions.
Statements by US Federal Reserve Chairman Jerome Powell on monetary policy could fuel hopes that the Fed will not hike interest rates further in June. Citing the recent turmoil in the banking sector, Powell had said interest rates “may not need to rise as much as they would otherwise to meet our targets.”
Morgan Stanley stock market analyst Michael Wilson said investors should not assume that Wall Street’s rally is the start of a new bull market. Wilson believes there are too many signs – both fundamental and technical – pointing to imminent market troubles, citing high valuations and the outperformance of defensive stocks, among other things. He therefore advises investors not to get carried away by the recent rebound, which pushed the S&P 500 up to its highest level since August 2022 last week.
The news that China’s regulatory authorities have warned against the use of Micron components caused the semiconductor group’s shares to drop by 4.5 percent before the market. The products would pose significant security risks to the supply chain of the country’s critical information infrastructure, the People’s Republic’s Cyber Security Authority said.
The US Internet giant Meta felt the hard hand of European data protection rules harder than ever before. The Facebook parent company was fined a record €1.2 billion by Irish regulator DPC on Monday. The case is about Facebook’s participation in mass surveillance by Anglo-American secret services. Meta shares fell 0.6 percent in premarket trading.
The takeover of the collapsed First Republic Bank has given the management of the largest US bank, JPMorgan, a more optimistic view of the current year. Net interest income excluding investment banking is expected to be around USD 84 billion in 2023 (previous target: USD 81 billion). In addition, management confirmed the cost forecast, but excluded the effects of the First Republic takeover. JPMorgan shares are up 0.4 percent premarket
Source: dpa-AFX
2023-05-22 13:14:00
#Equities #York #Outlook #Stable #expected #debt #dispute #focus
