The banking crisis and debt limit deadlock eroded investor confidence. In May, the UM consumer confidence index fell to a half-year low. On the 12th, the three major US stock indexes closed in the black. black.
On the 12th, the Dow Jones Industrial Average closed down almost flat by 0.03% to 33,300.62 points, closing in the dark for 5 consecutive trading days and writing the longest losing streak in 2 months. The S&P 500 ended down 0.16% at 4,124.08. The Nasdaq fell 0.35% to close at 12,284.74. On the weekly front, the Dow and the S&P fell 1.1% and 0.3% respectively, closing in the black for two consecutive weeks. The tech-heavy Nasdaq rose 0.4% for the week.
Tesla CEO Musk tweeted on the 12th that he had hired former NBCUniversal (NBCUniversal) advertising executive Linda Yaccarino as Twitter CEO, but Tesla’s stock price fell 2.3% that day.
In addition to Tesla, the stock prices of Apple and Amazon are also the number one war criminals dragging down the S&P index. But the S&P 500 technology index is still up 22 percent so far this year.
U.S. stocks opened flat on the 12th, but the University of Michigan’s consumer confidence index released in May not only fell to a six-month low, inflation expectations also rose to a new high since 2011, and U.S. stocks accelerated their decline.
At the same time, the financial health of regional banks is still the focus of the market. The share price of PacWest Bank of California (PacWest) remained under pressure on the 12th, falling 3%. After PacWest blew its deposit level down on the 11th, its stock price plummeted 23%. Although it has repeatedly assured that its business is safe, it still cannot appease investors.
U.S. President Joe Biden and the four giants of the Senate and House of Representatives originally planned to restart the debt limit negotiations on the 12th, but the temporary call was postponed until next week. The debt limit deadlock has become another hidden worry for the market. Despite the postponement of the debt limit negotiations between government leaders, staff-level talks between the two sides will continue over the weekend in the hope that the negotiations between Biden and the Big Four will be smoother this week.
The U.S. Congressional Budget Office (CBO) warned on the 12th that the U.S. government will face a serious risk of failing to pay its bills in the first two weeks of June unless the debt ceiling is raised in time.
The CBO pointed out that if the federal government can still pay its bills in the first two weeks of June, it will not have to worry about a sovereign default until at least the end of July.
further reading
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