Marcus Today Pre-Market Podcast – Thursday 25th May

Global equities fell overnight as US debt ceiling talks continue without a deal. All three major US indices are down just off session lows, extending losses from the prior session. Safe haven buying boosted the dollar and gold. Oil prices have reversed their recent downtrend, rising after a warning from the Saudi energy minister to speculators. Lots of Fed speak following the release of FOMC meeting minutes, a bevy of mixed signals from officials. One-month US bills are hovering near record highs on concerns about impending payments coinciding with the potential risk of the treasury running out of money; meanwhile, 10Y yields retracted. European markets were smashed after a fresh wave of selling, the Europe-wide STOXX 600 index fell 1.8%, logging its worst day in two months.

Dow Jones down 256 points (-0.77%). S&P 500 down 073%. NASDAQ down 0.61%. VIX Volatility Index up 8.1%. In European markets Stoxx 600 -1.8%, FTSE -1.7%, CAC -1.7%, and DAX -1.9%. SPI Futures are down 31 points (-0.43%).

Nvidia is up +25.61% in after-hours trade after exceeding Wall Street estimates by more than 50% in its revenue forecast for Q2. Growth attributed to an increased supply of its AI chips, in high demand for applications like ChatGPT. The company reported a robust performance, with data centre chip sales reaching US$4.28bn and gaming chip revenue exceeding expectations at US$2.24bn, while net income rose to US$2.04bn, reflecting strong financial growth.

HEADLINES

• Australia refers PwC tax document leak scandal to police.
• Australia and India to seek closer economic ties, critical minerals cooperation.
• RBNZ Governor Orr says confident in restrictiveness of interest rates.
• Republicans, White House see progress in US debt ceiling talks.
• Fed agreed need for more rate hikes after May meeting was 'less certain'.
• Ron DeSantis enters 2024 U.S. presidential race.
• Nvidia shares surge 21% as sales forecast jumps and AI booms.
• Stalled US debt talks, inflation woes hit stocks.
• White House says China's actions on Micron won't torpedo relations.
• Airbus rules out the imminent launch of new A220 jet version.
• McCarthy Says GOP and White House ‘Have Time’ to Reach Debt Deal.

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