Marcus Today Pre-Market Podcast – Wednesday 31st May

US markets finished mixed overnight. Dow down 0.15%. Dow at best up 39 points, at worst down 199 points. S&P 500 flat up 0.01%, and the NASDAQ extends its gains up 0.32% driven by a rally in semi-space, with Nvidia rallying a further 2.99%. S&P 500 and Nasdaq nearing their highest levels since August 2022 and are on track to post a monthly gain. Worries over the debt ceiling continue to weigh on markets. Long-dated treasury yields dropped while the dollar fell after reaching a two-month high. Telsa shares see a boost +4.14% after Musk’s visit to China, and was quoted he was “open to expanding in China”. European stocks are broadly down, Stoxx 50 -0.7% FTSE -1.4% CAC -1.3%, and DAX -0.3%, while the Stoxx 600 closed down 0.9% on track for its steepest monthly fall this year, despite hitting a year high earlier this month.  SPI futures down 34 points (-0.47%).

Nvidia briefly joined the US$1 trillion value club before closing 3% higher, just under the US$1 trillion valuation mark. Nvidia has now tripled its value in less than eight months, the latest surge driven by the company’s forecast and its forward P/E ratio of 47.3. Analysts see Nvidia as a crucial company in a rapidly changing era focused on AI capabilities. “During a gold rush, sell shovels”.

HEADLINES

• Top US Republican McCarthy urges support for debt ceiling deal ahead of key vote.
• Nvidia briefly joins $1 trillion valuation club.
• HP misses revenue estimates as inflation saps PC demand.
• Elon Musk kicks off China visit, Tesla expansion in focus.
• Stocks close mixed, Nvidia's rise offsets debt ceiling jitters.
• US consumer confidence dips to six-month low, labor market views soften.
• Ukrainian drones strike Moscow and Kyiv, tensions escalate.
• Deepfakes emerge in US politics, AI concerns raised.
• Chinese jet carries out aggressive maneuver near US military plane.
• NATO to deploy more troops to Kosovo to curb violence.
• ECB warns of impact on top European banks if funds run into trouble.
• Pfizer's hemophilia therapy shows positive results in late-stage study.
• OPEC+ cuts oil output to stabilise prices.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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