NVIDIA hits record high, NY Dow down for 5 days | 26th Financial Tankan

1 year ago 63

5/26 (Friday) morning market trends (compared to the previous day)

traditional finance

NY Dow: $32,764 -0.1%
Nasdaq: $12,698 +1.7%
Nikkei Stock Average: ¥30,801 +0.3%
USD/JPY: 140 -0.01%
US dollar index: 104.2 +0.3%
10-year US Treasury yield: 3.82 +2.8%
Gold Futures: $1,942 +0.03%

crypto assets

Bitcoin: $26,450 +0.3%
Ethereum: $1,806 +0.4%

NY Dow Nasdaq today

Today’s NY Dow fell to -35.2 dollars for 5 days in a row. The Nasdaq climbed +213.9. Nvidia soared after the previous day’s results, and AI and tech-related stocks rose, supporting the Nasdaq.

Progress on the U.S. Debt Problem

Negotiations on raising the US debt ceiling were held late into the night the day before, but no concrete agreement has yet been reached. But House Speaker McCarthy said, “I think we’ve made some progress,” adding, “We’ve instructed our team to work around the clock.”

The stock market still seems to be optimistic about the possibility of default, but the financial implications of the tangle of negotiations until just before the “June 1 (X-day)” limit, when government funds are said to run out He seems to be wary of the risks.

connection: “X Day” approaching US debt ceiling problem, possible scenarios and their impact

U.S. January-March GDP, GDI, etc.

US January-March GDP (Real Gross Domestic Product) was revised upwards from the preliminary forecast of 1.1% to 1.3%. The revised figure for private consumption was also revised upward from the preliminary forecast of 3.7% to 3.8%.

However, Gross Domestic Income (GDI), which measures economic activity in terms of income, fell 2.3% following the -3.3% recorded in the previous quarter (4th quarter of 2022). It was the second consecutive quarter of negative growth, suggesting signs of a slowdown in the economy. GDP and GDI are considered important indicators of economic activity in the United States.

According to Bloomberg, two economists at Wells Fargo & Co. said in a report that “the GDI’s weakness suggests that real GDP growth seen in recent quarters may be revised down in future data releases. It will be something,” he pointed out.

Meanwhile, the number of initial U.S. unemployment claims last week fell short of expectations of 245,000, up 4,000 from the previous week to 229,000. The small increase was attributed to the discovery of a large number of fraudulent claims in Massachusetts.

The level of unemployment claims is still at a historically low level, suggesting that labor demand remains strong, adding to bullish indicators such as GDP and supporting expectations of another interest rate hike later this year.

dollar yen

Against the background of growing speculation of additional interest rate hikes in the United States, the dollar hit a high of ¥140.23 against the yen, the highest since November 23, 2018.

Source: Yahoo! Finance

connection: The background of the “strong dollar” that affects the virtual currency market also explains the correlation and factors of the weak yen

connection: Top 3 rankings of ETFs (listed investment trusts) in Japan and overseas that can be purchased with NISA

economic indicators

May 26, 21:30 (Friday): U.S. April Personal Consumption Expenditure (PCE deflator)
May 29 (Mon): U.S. market closed
Thursday, June 1, 21:15: U.S. May ADP Employment Statistics
June 1, 22:45 (Thursday): US May Manufacturing Purchasing Managers Index (PMI, revised value)
June 1, 23:00 (Thursday): US May ISM Manufacturing Index

US stocks

Today’s US stock market saw buying in the artificial intelligence (AI) sector. The bullish May-July (second quarter) sales forecast announced by NVIDIA, a major U.S. GPU maker, was well received, and semiconductor-related stocks such as AMD and c3.ai, as well as AI-related stocks, rose sharply. bottom.

Nvidia’s stock has surpassed its ATH in 2021 and is approaching a $1 trillion market cap. (currently $939.294 billion)

Source: Tradingview

Individual stocks compared to the previous day: NVIDIA +24.3%, AMD +11%, c3.ai +2%, Tesla +0.8%, Microsoft +3.8%, Alphabet +2.1%, Amazon -1.5%, Apple +0.6%, Meta + 1.4%.

Also, AI-related cryptocurrency stocks benefited from a sharp rise in AI and semiconductor stocks.