5/17 (Wednesday) morning market trends (compared to the previous day)
- NY Dow: $33,012 -1%
- Nasdaq: $12,343 -0.1%
- Nikkei Stock Average: ¥29,842 +0.7%
- USD/JPY: 136.3 +0.2%
- US dollar index: 102.6 +0.1%
- 10-year US Treasury yield: 3.5 +0.9% annual yield
- Gold Futures: $1,993 +0.01%
- Bitcoin: $27,360 +1.7%
- Ethereum: $1,827 +1.6%
NY Dow today
Today’s NY Dow fell sharply to -336.4 dollars. The Nasdaq closed at -$22. Markets were weighed down by factors such as the uncertain future of the US debt ceiling and the slowing pace of economic recovery in China.
connection: U.S. stocks rose slightly Debt ceiling talks scheduled to be held today | 16th Financial Tankan
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About the US debt problem
On the 16th, US time, President Biden and Speaker of the House of Representatives McCarthy held discussions on the debt issue as planned, but it was still difficult to make concessions due to raising the debt ceiling, and an agreement was not reached.
“It’s been a productive conversation, but there’s still a lot of work to do,” House Speaker McCarthy told reporters after the talks.
U.S. Treasury Secretary Janet Yellen again warned on Wednesday that the Treasury Department risks running out of money as early as June 1 unless Congress raises or suspends the federal debt ceiling.
According to NHK reports, the impact of a default in the short term would result in a rapid economic recession, job losses of about 500,000 people, an increase in the unemployment rate of 0.3%, and a drop in GDP. It is estimated to be 0.6% in real annual terms. (The US has never defaulted on its debts.)
Worried about China’s economic recovery?
China’s personal consumption and industrial output growth were weaker than expected in April, announced on the 16th, and the youth unemployment rate (20.4%) hit a record high. It shows that the momentum of the economic recovery is slowing, suggesting that the Chinese authorities need to strengthen the economic support.
On the other hand, the International Energy Agency (IEA) indicated on the 16th that China’s oil demand recovery seen after the end of the zero-corona policy was more than expected, indicating that global oil demand this year may grow faster than previously forecast. rice field.
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remarks by dignitaries
Cleveland Federal Reserve Bank President Loretta Mester on Wednesday sounded hawkish in favor of further monetary tightening, saying interest rates were not yet at levels that were sufficiently constraining for the economy.
Earlier in the day, Atlanta Fed President Bostic and Minneapolis Fed President Kashkari also gave hawkish views.
In addition, according to CME interest rate trends, the FOMC is expected to stop rate hikes at next month’s meeting and start cutting rates by the end of the year, but there are also expectations for a 0.25% hike at next month’s meeting. there is
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- May 18, 21:30 (Thursday): Number of continuous recipients of unemployment insurance and number of new applications for unemployment insurance for the previous week
- Friday, May 19, 24:00: Chairman Powell of the Federal Reserve Board remarks
- May 23, 22:45 (Tuesday): US May Manufacturing Purchasing Managers Index (PMI, preliminary figures)
- May 25, 3:00 (Thursday): Federal Open Market Committee (FOMC) Minutes
- May 25, 21:30 (Thursday): U.S. January-March Quarterly GDP Personal Consumption (revised value)
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IT/Tech stocks compared to the previous day: NVIDIA +0.9%, c3.ai -1.7%, Tesla +0.1%, Microsoft +0.7%, Alphabet +2.5%, Amazon +1.9%, Apple 0%, Meta -0.01 %.
Warren Buffett-led Berkshire Hathaway divested Taiwan Semiconductor Manufacturing Co. became clear. In addition, in response to recent bank credit concerns, we disposed of our stakes in US Bancorp and Bank of New York Mellon and acquired a new 2.6% stake in Capital One Financial.
In the IT sector, Apple increased its stake by 2.3%, while computer maker HP increased its stake by 16%. (January-March period data)
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Virtual currency related stocks fall
- Coinbase｜$57.8 (-4.7%/+0.9%)
- MicroStrategy | $273.4 (-3.2%/+0.9%)
- Marathon Digital | $9.2 (-3%/+3.7%)
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