US Stocks Mixed as Market Assesses Possibility of Debt Ceiling Agreement Passing Congress: Tech Titans, AI Stocks Remain Strong Despite Concerns over Rising Interest Rates and Inflation

As the market continues to assess the possibility of the U.S. Congress passing the debt ceiling agreement, U.S. stocks closed mixed on Tuesday (30th),Dow Jonesclosed slightly lower,S&P 500 IndexFlat, but still hovering at the highest level since last August,That fingerandfee halfSynchronous red, but late rally convergence.

Huida (NVDA-US) rose another nearly 3% on Tuesday, briefly touching $1 trillion in market value after the opening bell. Driven by the strength of artificial intelligence (AI stocks),Nasdaq Composite IndexIt once surged 1.4% in the intraday session, but the gains converged in late trading, closing up 0.32%.fee halfIt closed 0.1 percent higher after hitting its highest level since last February.

U.S. President Joe Biden and House Speaker Kevin McCarthy (Kevin McCarthy) reached an agreement in principle on raising the debt ceiling over the weekend, and the House of Representatives will vote on Wednesday (31st). Even if the two sides reach a preliminary agreement, some right-wing Republicans have indicated that they will vote against it, which may face obstacles in the House of Representatives.

The 10-year U.S. Treasury yield reversed after the weekend, falling to 3.692% by the time of writing, and the one-month U.S. Treasury yield also fell from 5.496% to 5.224%.

Concerns over another rate hike by the Federal Reserve weighed on investor sentiment. Traders see a 68.8 percent chance the Fed will raise interest rates next month, according to the CME Group’s FedWatch tool.

Richmond Fed President Thomas Barkin said at an event that he is looking for signs of cooling demand and that while inflation has slowed, it is still too high.

The market also focused on the latest economic data. The U.S. Institute for Economic Research reported on Tuesday that its index of consumer confidence fell to a six-month low in May, showing that confidence in the labor market and business outlook had slipped ahead of a debt-ceiling deal.

The U.S. Department of Labor is scheduled to release the non-farm payrolls report for May this Friday (2nd), revealing how resilient the U.S. economy is as rising interest rates curb lending activities.

The performance of the four major US stock indexes on Tuesday (30th):

Focus stocks

The five kings of technology have their ups and downs. apple (AAPL-US) up 1.07%; Meta Platforms (META-US) rose 0.18%; Alphabet (GOOGL-US) down 0.75%; Amazon (AMZN-US) up 1.29%; Microsoft (MSFT-US) down 0.50%.

Dow JonesConstituent stocks fell more and rose less. Merck (MRK-US) down 1.71%; Po Kiu (PG-US) down 1.53%; Visa (V-US) down 1.5%; Nike (OF THE US) down 0.92%; 3M (MMM-US) fell 0.91%; Kintor Heavy Industry (CAT-US) fell 0.9%; Salesforce (CRM-US) up 1.59%; Intel (INTC-US) up 3.41%.

fee halfConstituent stocks were mixed. Qualcomm (QCOM-US) up 5.12%; Intel (INTC-US) up 3.41%; Huida (NVDA-US) up 2.99%; Broadcom (AVGO-US) down 1.16%; AMD (AMD-US) down 1.39%; Micron (MU-US) down 3.03%; Marvell (MRVL-US) down 3.22%.

ADRs of Taiwan stocks are exhausted. TSMC ADR(TSM-US) fell 1.19%; ASE ADR (ASX-US) fell 2.66%; UMC ADR (UMC-US) fell 3.12%; Chunghwa Telecom ADR (CHT US) fell 0.20%.

Corporate News

Huida (NVDA-US) briefly surpassed the US$1 trillion mark on Tuesday, becoming the first chip maker to join the “trillion yuan club”, but pared some gains in late trading and closed up 2.99%. Some AI concept stocks continued their momentum, C3.ai (AI-US) closed up 33.4%, UiPath (PATH-US) rose about 6%,

Tesla (TSLA-US) closed up 4.14%, and Tesla rose 6% after reports that Tesla Chief Executive Elon Musk’s private jet arrived in China, Musk’s first visit to China in three years. According to Reuters, Musk will meet with senior Chinese officials and visit Tesla’s Shanghai factory.

Electric vehicle charging pile operator ChargePoint (CHPT-US) closed up 14.13%, the stock price hit a two-month high. Analysts at Bank of America (BofA) are optimistic about the company’s firm leadership in the European and American charging markets, and its valuation is convincing, so they upgraded it to a “Buy” rating.

Energy stocks were broadly under pressure as oil and gas prices fell. Devon Energy Corporation (DVN-US) closed down 2.31%, Diamondback (FANG-US) fell 1.15%, Chevron (CVX-US) and ExxonMobil (XOM-US) fell about 0.6% and 0.9% respectively.

Economic data

• In April, the S&P Case-Shiller 20 big city housing price index in the United States decreased by 1.1% year-on-year, and the previous value increased by 0.4% year-on-year
• The U.S. Economic Research Institute’s consumer confidence index was at 102.3 in May, from 103.7 in the previous month

Wall Street Analysis

“I wouldn’t be surprised if the first vote fails, forcing Congress to vote again, but I firmly believe that the debt ceiling deal will be passed by June 5,” said Sam Stovall, CFRA’s chief investment strategist.

“The market will eventually overcome its concerns, and the debt ceiling issue is obviously one of them,” said Chris Barto, investment analyst at Fort Pitt Capital. “But I think, to some extent, the market has priced in the possibility of a deal.”

“The Fed remains the focus of all investors,” said Brian Price, director of investment management at Commonwealth Financial Network. “It’s a tug-of-war over the Fed’s potential actions: Will they raise rates one or two more times, or stop, and we’ll see What will the inflation data look like in the next few months.”

Gina Bolvin, president of Bolvin Wealth Management Group, believes that the decline in consumer confidence may be a bullish indicator against the trend, and the next catalyst to move the market will be this week’s non-farm payrolls report.

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