Major stock indexes were mixed after paring gains on Tuesday afternoon. News of the progress in raising the debt ceiling eased the minds of investors, though the hurdles remained.
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President Joe Biden and House Speaker Kevin McCarthy I struck a tentative debt reduction deal Saturday night. The agreement includes a two-year debt limit increase and will keep non-defense and non-veteran discretionary spending constant with current levels over two years. It will also impose some new restrictions on some government aid.
The bill must be passed before the June 5 deadline; Otherwise, the Treasury says it will run out of money to pay certain liabilities. The House committee vote is set for today, and the full House could vote on Wednesday.
“I feel really good about that,” Biden told reporters on Monday. “There is no reason not to do so” in time to avoid default, he added.
Stock market news
The Nasdaq pared its gains to 0.2% in the afternoon session. The Dow Jones Industrial Average fell 0.4%. The S&P 500 fell 0.1%. iShares Russell 2000 ETF (iwm) decreased by 0.4%.
Nasdaq’s gains continue to be skewed by rallies in key technologies such as nvidia (NVDA). First Trust’s NASDAQ 100 Equal Weighted Mutual Fund (QQEW) decreased by 0.1%, indicating weak supply.
Trading volumes on the New York Stock Exchange and the Nasdaq rose against the same time on Friday, as traders got back to work after the long weekend.
Nasdaq 100 Tracking Index Invesco QQQ Trust ETF (QQQ) increased by 0.4%. The Innovator IBD 50 ETF (fifty) rose 0.3%, but pared gains.
The price of crude oil fell 4.8% to $69.17 a barrel. Gold futures rose 0.7% and remained below the psychological level of $2,000 an ounce. Meanwhile, bitcoin rose 3.3% to $27,790.
The 10-year US Treasury yield trimmed 12 basis points, to 3.69%. the CME FedWatch tool More than 60% show odds of a quarter-point rate hike at the Fed’s June meeting, and the rest of the Fed watchers expect no change.
European stocks fell, with Germany’s DAX down 0.3%, while the Paris CAC fell 1.3%. The FTSE in London fell 1.4%.
US Consumer Confidence for May came in at 102.3 vs. 100.0 expected.
Stock market movers: Nvidia and AI are in focus again
Nvidia, the graphics chip maker and artificial intelligence giant, has reached the $1 trillion market cap level today.
the leaderboard The stock pared earlier gains, now up another 3.1% on Tuesday on high volume, after the company announced it would build an artificially intelligent supercomputer.
The shares have gained more than 35% in the past three days and 40% in the month. Shares have outperformed, gaining 180% this year and hitting an all-time high today.
In a keynote address in Taiwan, CEO Jensen Huang said Sunday that the company has ramped up production of the H100, its new flagship chip for generative AI. “The demand is literally from every corner of the world,” he said, according to L.A Wall Street Journal. Huang debuted a set of AI-related services and products.
Shares rose more than 24% Thursday after the first-quarter earnings report exploded.
Advertising agency inventory wpp (wpp) rose 1.3% on the news that it will partner with Nvidia to engine photo and video content.
Artificial intelligence software company C3. ai (Amnesty International) rose over 21% to add to the breakout on Friday sparked by the strong Marvell technology (MRVL) and Nvidia’s earnings last week.
C3.ai raised its preliminary financial fourth-quarter earnings and sales figures on May 15, above analyst expectations. Amnesty International is scheduled to report its financial results for the quarter ending in April Wednesday after the closing bell. The stock has been extended from 34.78 buy points.
These stocks are below key levels
defect 50 stock Lantheus Holdings (LNTH) sold off for the second day in a row, losing 3.2% on top of Friday’s 7% loss. Shares of the medical diagnostics company fell below its 50-day moving average, sending a warning sign.
Reservation holdings (BKNG) fell 2.1%, sending it below the 50-day line it breached last week. Stocks fell after news that the European Union is expected to issue a warning to the online travel agency about its bid to buy a Sweden-based travel company, according to the British newspaper The Guardian. Reuters.
Digital Infrastructure Platform Operator Fresh remains (NEWR) fell by 2.5%, making it deeper below the 50-day line. The loss from 80.98 points of purchase exceeded 10%, triggering a sell signal. TPG (TPG) and a private equity firm in San Francisco Conversations ended to buy NEWR, Reuters said on Friday.
Arista Networks hit point buy
Synopsys (SNPS) down 3.9% in heavy work on news of its collaboration with UK-based company Arm, on its AI-enhanced design. The shares have been extended from 392.89 buy points.
IBD 50 stock Fluence Energy (FLNC) rose by 3.8% and reached 24.87 buying points for the handle, before turning back. Fluence provides energy storage services and AI-powered digital applications for renewable energy sources.
Cloud Networks Inventory Arista Networks (network) rose by 3.8% on heavy volume and broke the bottom of the cup with 171.54 buy points. Stocks in the buy zone 5% to 180.12.
Community (CFLT) to a new high topping at 29.82 buy points, although 25.78 was a previous entry. Reports said Needham kicked off coverage with a 35 price target and a Buy rating.
Other stock market movers: Focus on electric vehicle stocks
Tesla (TSLA) rose by 3.5% on heavy volume, forming a cup base with 207.89 buy points. The stock has regained its 200-day moving average.
Stocks rallied on news that CEO Elon Musk is expected to fly to China to tour the Shanghai Gigafactory, his first trip there in nearly three years. The plant produces more than 80,000 electric vehicles per month, according to Wedbush analyst Dan Ives.
stronghold (F) down 4.3% after Jefferies’ upgrade Ford to buy rating From hold, raise the price target to 16 from 13.
Charge Point (CHPTHeavy volume increased 13% after Bank of America upgraded the electric vehicle charging station provider to buy from neutral, but cut its price target to 14 from 15.50. ChargePoint will release its first-quarter earnings on Thursday after the market closes.
Follow Kimberley Koenig for more stock news on Twitter @employee.
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