(New York) The New York Stock Exchange closed in mixed order on Monday as trading volume was modest pending further talks on the US debt ceiling.
The Dow Jones index fell 0.42% to 33,286.58 points. The tech-heavy NASDAQ gained 0.50% to 12,720.78 and the S
President Joe Biden and Kevin McCarthy, his main Republican opponent on the debt ceiling, were to resume negotiations after the close of markets on Monday to try to find a quick agreement and avoid a dangerous default of payment from the United States.
To give the green light to raising the country’s debt limit, Republicans want social spending cuts. A deal must be reached before June 1, otherwise, for the first time in its history, the United States risks defaulting on the repayment of Treasury bonds.
“The main driver of the market remains these ongoing talks in Washington which hopefully will avoid a default,” said Edward Moya of Oanda.
But for Spartan Capital’s Peter Cardillo, the market “isn’t exactly scared off by the rhetoric from Washington.” In a low-volume session, the Dow Jones fell mostly weighed down by Chevron (-1.81%) and McDonald’s (-2.10%).
The oil company will buy PDC, a producer of crude oil and natural gas in Colorado and Texas, for $6.3 billion, more than 10% above the stock price at the close on Friday.
Also a member of the Dow, Nike fell 3.97% as the stock’s rating was downgraded by analysts in the wake of sports shoe distributor Foot Locker (-8.56%).
“I think investors are more focused on the monetary policy of the Fed,” said Peter Cardillo, noting that Neel Kashkari, a voting member of the Currency Committee and chairman of the Minneapolis Fed, suggested that a pause in increases rate in June is possible.
“It’s pretty tight between needing to raise rates or skip the round,” he said, sounding more subdued than the week before.
It seems “the idea of a break is spreading,” the Spartan Capital analyst concluded.
Semiconductor maker Micron Technology fell 2.85% as China accuses the US group of security flaws and calls on companies to stop buying its chips. The United States responded with “very serious concerns” about the sales restrictions, according to a State Department spokesperson.
Meta gained 1.09% despite a record €1.2 billion fine from the Irish regulator for breaching European data protection rules (GDPR) with its social network Facebook.
Video conferencing specialist Zoom, which ended up 2.94% at $71.41, was still up more than 5% in electronic trading after the close. The group announced quarterly results slightly above analysts’ forecasts.
In the morning, a brief episode of fake news tripped up the indices for a moment. A fake photograph relayed on Twitter showing an explosion at the Pentagon caused the market to dip slightly for ten minutes.
A Pentagon spokesperson had to deny “the misinformation”.
“There was a downside to this misinformation when the machines picked it up,” noted Pat O’Hare of Briefing.com, referring to automated brokerage software that is programmed to react to network posts. social.
But the fact that this low remained measured against the content of this false information suggests that some had already “deemed it muddy”, added the analyst interviewed by AFP.