Wall Street: disappointed by the Fed, Nvidia beats all expectations – 05/23/2024 at 07:32

Wall Street: disappointed by the Fed, Nvidia beats all expectations – 05/23/2024 at 07:32
Wall Street: disappointed by the Fed, Nvidia beats all expectations – 05/23/2024 at 07:32

(CercleFinance.com) – Wall Street suffered a bit during the publication of the Fed’s ‘minutes’: the indices lost -0.3 to -0.6% before reducing their losses a little during the of the last 90 minutes of the session. In the end, the Dow Jones lost around -0.5% to 39671, the S&P500 -0.25% to 5307 and the Nasdaq Composite -0.2% to 16801.

The ‘tech’ index ends in the red despite Moderna’s +13.7% surge and the rise in semiconductors such as Analog Devices +10.5%, ON Semiconductors +4.8%, Microchip +3 .9%, CSX +2.8%, NXP +1.6%, Qualcomm +1%.

Of course, the highlight of May 22 was Nvidia’s results: its turnover soared much more than expected, to more than $26 billion in the first quarter, and its management anticipates $28 billion for the quarter. in progress.

The challenge was to send Nvidia to test the symbolic threshold of $1,000, but the highest price was $997 (i.e. +5%). It still jumped to $990 in the first post-results exchanges… before balancing around $980 (+3%).

The ‘number of the day’ (there was only one) did not provoke any notable reaction: sales of existing homes in the United States fell by 1.9% in April to 4.14 million units at an annualized rate, according to the Federation of Real Estate Agents (NAR).

Another highlight of the day, the minutes of the last FOMC meeting (published at 8:00 p.m.) contained a few surprises: if Jerome Powell declared several times that the Fed’s next move ‘will not be a rate hike’ , some members of the ‘board’ felt that nothing should be forbidden and not hesitate to raise them if necessary.

The other disagreement concerned the pace of slowdown in quantitative tightening, which was accelerated (more than expected by the market) at the last meeting in early May. These ‘minutes’ demonstrate that FOMC members will probably wait until the end of summer before reducing the key rate.

According to the CME Group’s FedWatch barometer, the probability of a rate hike at the start of the school year is currently estimated at 50.8%, compared to 45.6% a month ago: the consensus is thus falling below the bar again. 50%.

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