Last updated: 4:00PM EST
Monday’s trading session concluded with a mixed performance for stocks, as investors remained vigilant regarding ongoing debt ceiling discussions. The S&P 500 (SPX) inched up 0.02% by the end of the day, while the Nasdaq 100 (NDX) closed with a gain of 0.34%. In contrast, the Dow Jones Industrial Average (DJIA) experienced a modest decline of 0.42%.
Meanwhile, Minneapolis Fed President Neel Kashkari cautioned investors about reading too much into a June pause when it comes to the current interest rate-hiking cycle.
Kashkari told CNBC’s Squawk Box, “If we did, if we were to skip in June, that does not mean we’re done with our tightening cycle. It means to me we’re getting more information.”
More or less, the same sentiment was echoed by St. Louis Fed President James Bullard who stated that he would like to see two more interest rate hikes of a quarter-percentage-point this year.
Bullard commented in a discussion at the American Gas Association’s Financial Forum, “I think we’re going to have to grind higher with the policy rate in order to put downward pressure on inflation.”
Last updated: 9:58AM EST
Investors were jittery to start the week on Monday as the deadline of June 1 looms and there is still no headway when it comes to debt ceiling negotiations. Markets opened mixed to start the week with the Nasdaq 100 (NDX) up by 0.54%, while the S&P 500 (SPX) was up by 0.1% and the Dow Jones Industrial Average (DJIA) is down by 0.34% at 9:58 a.m. EST, May 22.
First published: 5:20AM EST
U.S. Futures remain volatile this morning as U.S. debt ceiling negotiations are set to resume today between President Biden and House Speaker Kevin McCarthy. Even so, markets remain hopeful, as Washington has always reached a deal in the past to avert similar debt ceiling concerns. Futures on the Nasdaq 100 (NDX) are up 0.03%, while those on the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are down by 0.07% and 0.10%, respectively, at 4:15 a.m. EST, May 22.
The President returned from the G-7 Summit held in Hiroshima over the weekend and reaffirmed his stance on de-risking and diversifying the country’s relations with China. At the same time, the trade war between both nations escalated as Beijing banned its key infrastructure operators from buying products from U.S. chipmaker Micron (NASDAQ:MU), citing severe network security risks.
Notably, the week will be marked by speeches from several Federal Reserve officials and the latest FOMC meeting minutes scheduled for May 24. Traders will keenly watch the details to see if officials give any clues on future monetary policy. Meanwhile, Fed Chair Powell stated in his speech on Friday that the Fed is very unlikely to raise interest rates at the next meeting. The pressure from the recent banking crisis has led to tighter credit conditions, adding the required stress on “economic growth, hiring, and inflation,” he added. Accordingly, interest rates won’t need to rise as much as previously expected.
On the earnings front, Israel-based shipping liner ZIM Integrated (NYSE:ZIM) and video telepathy platform Zoom Video Communications (NASDAQ:ZM) will report today.
Elsewhere, European indices are also trading mixed today as traders await the negotiations on the U.S. debt ceiling to take shape.
Asia-Pacific Markets End in the Green
Most Asia-Pacific indices ended the trading session in the green as Chinese stocks rose on the news of the ban on Micron’s products. Also, progress on U.S. debt ceiling negotiations keeps traders optimistic.
Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the trading session up 1.17%, 0.39%, and 0.32%, respectively. Further, the People Bank of China kept prime lending rates unchanged for the 1-year and 5-year loans.
At the same time, both of Japan’s major indices touched an all-year high, ending the trading session in the green. Nikkei and Topix ended up 0.90% and 0.66% respectively.
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