© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, May 11, 2023. REUTERS/Brendan McDiarmid
By Saeed Azhar and Shrishi Sanyal
NEW YORK (Reuters) – Wall Street closed mixed on Monday, boosted by gains in Alphabet (NASDAQ:) and Meta platforms, while some investors refrained from big bets ahead of a new round of talks on raising the U.S. debt ceiling.
US President Joe Biden and Republican Congressman Kevin McCarthy are scheduled to meet on Monday to discuss raising the federal debt ceiling, just 10 days before the US faces an unprecedented default.
“Investors are basically saying, ‘We’re giving at least a 60:40 chance that they’ll come to a deal in time,'” said Sam Stovall, chief investment analyst at CFRA Research.
“The agreement could be just an extension, and it starts to get down the road to a decision on the debt ceiling when they discuss budgets in September.”
According to preliminary data, the S&P 500 index rose by 0.72 points, or 0.02%, to close at 4,192.70 points, while the Nasdaq Composite Index rose 62.61 points, or 0.50%, to 12,720.51 points. The Dow Jones industrial average fell 139.62 points, or 0.42 percent, to 33,287.01 points.
Comments from St. Louis Federal Reserve Bank President James Bullard on Monday that the Fed may still need to raise its benchmark interest rate by another half point this year sent the US dollar higher.
Investors will be looking for clues to monetary policy from a slew of Fed speakers and key data points this week such as Personal Consumption Expenditure (PCE) and Durable Goods for April.
The Personal Consumption Expenditure Index, the Fed’s preferred measure of inflation, is due on Friday.
Technology-related stocks lifted the market, with gains in Alphabet Inc and Meta Platforms Inc (NASDAQ:).
“As the debt ceiling drama intensifies, big tech stocks are becoming Wall Street’s new favorite defensive trade,” said Edward Moya, senior market analyst at OANDA.
Apple Inc (NASDAQ:) tumbled after Loop Capital downgraded the iPhone maker’s stock to “hold” from “buy,” its first downgrade in five months according to Refinitiv data.
In a move seen as an escalation of trade tensions between the United States and China, Beijing has blocked chipmaker Micron Technology Inc (NASDAQ:) from selling memory chips to key domestic industries, sending its shares plummeting.
Regional banking stocks rallied on news that PacWest Bancorp has agreed to sell a portfolio of 74 real estate construction loans to a subsidiary of Kennedy-Wilson (NYSE:: Holdings Inc.).
Pacwest shares rose, while other regional lenders such as Western Alliance (NYSE:) and Comerica (NYSE:) Inc.
Shares of the largest lenders tumbled, with JPMorgan Chase & Co (NYSE: NYSE: NYSE) falling despite the company saying net interest income would rise $3 billion as it increases interest payments from its failed purchase. First Republic Bank (Outside the cabin:) This year.
shares green hill (NYSE:) & Co doubled after Mizuho Financial Group Inc bought the US merger and acquisition advisory firm for $550 million including debt.
Japan’s No. 3 lender is looking to take a larger share of the world’s largest investment banking fee pool.
daw component chevron Corp (N:) stock fell after the oil major said it would take over PDC power (NASDAQ:) Inc in an all-equity deal worth $7.6 billion, including debt.