Stocks fluctuated after a rally driven by the artificial-intelligence hype that drove the equity market to the highest since August. Treasury yields fell on hopes the US Congress will pass a debt deal to head off a default.
(Bloomberg) — Stocks fluctuated after a rally driven by the artificial-intelligence hype that drove the equity market to the highest since August. Treasury yields fell on hopes the US Congress will pass a debt deal to head off a default.
The S&P 500 was little changed. Energy companies weighed on the index as oil slumped amid growing doubts that OPEC+ will cut production at its meeting next month. The Nasdaq 100 outperformed, with Nvidia Corp. becoming the first chipmaker with a $1 trillion market value after announcing several AI-related products.
“Yes, AI does have great potential and it does appear to be the ‘next big thing’,” wrote Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter. “But I don’t see how that promise can offset the reality of higher interest rates and more pressure on the economy, at least not for a sustainable period.”
Treasury bills maturing in the first half of June rallied as trading resumed following a US holiday after a deal to lift the debt ceiling.
Yields on securities payable in early June — seen as most at-risk because Treasury Secretary Janet Yellen has said the government will exhaust its cash as soon as June 5 — resumed their drop on Tuesday, and others due in the first half of the month followed suit. Bills due June 6 yielded 5.2%, down from about 7% at one point last week.
Key events this week:
- China manufacturing PMI, non-manufacturing PMI, Wednesday.
- US job openings, Wednesday.
- Federal Reserve’s Beige Book, Wednesday.
- Fed’s Patrick Harker, Susan Collins and Michelle Bowman speak at events, Wednesday.
- China Caixin manufacturing PMI, Thursday.
- Eurozone HCOB Eurozone Manufacturing PMI, CPI, unemployment, Thursday.
- US construction spending, initial jobless claims, ISM Manufacturing, Thursday.
- ECB President Christine Lagarde speaks at conference, Thursday.
- Fed’s Patrick Harker speaks at webinar, Thursday.
- US unemployment, nonfarm payrolls, Friday.
Some of the main moves in markets:
Stocks
- The S&P 500 was little changed as of 11:17 a.m. New York time
- The Nasdaq 100 rose 0.8%
- The Dow Jones Industrial Average fell 0.5%
- The Stoxx Europe 600 fell 1%
- The MSCI World index fell 0.1%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.2% to $1.0725
- The British pound rose 0.4% to $1.2408
- The Japanese yen rose 0.5% to 139.74 per dollar
Cryptocurrencies
- Bitcoin was little changed at $27,703.44
- Ether rose 0.4% to $1,901.4
Bonds
- The yield on 10-year Treasuries declined 10 basis points to 3.70%
- Germany’s 10-year yield declined nine basis points to 2.35%
- Britain’s 10-year yield declined eight basis points to 4.25%
Commodities
- West Texas Intermediate crude fell 3.8% to $69.94 a barrel
- Gold futures rose 0.7% to $1,977.40 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Vildana Hajric, Carly Wanna and Isabelle Lee.
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