US close: Stocks mixed as debt ceiling talks restart

Wall Street’s main stock gauges showed mixed results at the close of trading on Monday, as the Nasdaq Composite rose to its highest point in nine months.

At the close, the Dow Jones Industrial Average shed 0.42% to end at 33,286.58, while the S&P 500 index saw a marginal rise, inching up 0.02% to 4,192.63.

The tech-heavy Nasdaq Composite, meanwhile, added 0.5%, to end at 12,720.78 - its highest close in nine months.

Negotiations between Republicans and the White House on the federal debt ceiling were set to resume after the market closed, as investors looked for any signs of progress.

In currencies, the dollar was steady against sterling to last trade at 80.41p, while it slipped 0.01% from the common currency to 92.47 euro cents.

The greenback also saw a slight dip against the yen, decreasing 0.04% to change hands at JPY 138.55.

“US markets opened broadly unchanged, after the modest declines seen on Friday as the uncertainty around events in DC continued to keep investors cautious,” said CMC Markets chief market analyst Michael Hewson earlier.

“Chipmaker Micron shares are in focus after China banned the company from selling its chipsets inside the country, over security concerns, sending the shares lower in early trade, while the rest of the sector has been mixed with AMD higher, and Nvidia unchanged ahead of its numbers later this week.”

Fed’s Bullard pitches two more rate hikes this year

On the economic front, a key figure at the Federal Reserve recommended the implementation of two additional 25-basis point hikes to the interest rate this year, urging for these adjustments to be made "sooner rather than later."

James Bullard, president of the St. Louis Fed, delivered the remarks at the American Gas Association's Financial Forum in Fort Lauderdale, Florida.

“I think we're going to have to grind higher with the policy rate in order to put downward pressure on inflation,” he said according to Dow Jones Newswires.

“You want to get the downward pressure while you can.”

However, he acknowledged the unpredictability surrounding the exact timing of these proposed rate hikes.

Bullard noted that predictions made in March by Fed officials of a peak 5.1% Fed funds rate were based on the anticipated deceleration of both economic growth and inflation.

“Inflation is hanging up too high.”

Earlier, the People's Bank of China continued to hold its benchmark lending rates steady for the ninth consecutive month, matching market expectations.

Both the one-year and five-year loan prime rates (LPR) were left unchanged, at 3.65% and 4.30%, respectively.

Commercial lending rates for one and five-year loans were also maintained by the central bank in Beijing.

Micron hit by China announcement, Greenhill rockets on acquisition

In equities, Micron Technology shares took a hit, dropping 2.85% after China's Cyberspace Administration blacklisted the US chipmaker's products from major infrastructure projects over national security concerns.

Over the weekend, the regulatory body said a review of Micron's products unveiled "serious network security risks", which posed "significant risks to China's critical information infrastructure supply chain, affecting China’s national security".

On the upside, PacWest Bancorp leapt 19.55% on the back of the company's agreement to sell a portfolio of 74 real estate construction loans.

The portfolio, with an aggregate principal balance of around $2.6bn outstanding, was set to be acquired by a subsidiary of Kennedy-Wilson Holdings.

Elsewhere, despite a hefty $1.3bn fine from European regulators over user data transfers to the US, Facebook parent Meta Platforms added 1.09% by the closing bell.

In the most significant move of the day, Greenhill & Co skyrocketed 116.22% after Japan’s Mizuho Financial Group announced plans for a $550m all-cash buyout of the independent investment bank.

Reporting by Josh White for Sharecast.com.

DOW JONES INDUSTRIAL AVERAGE -140.05 (-0.42%) 33,286.58

RISERS
3M Co +2.71% $101.71
American Express +1.67% $155.51
Intel Corporation +1.17% $30.28
Microsoft Corporation +0.9% $321.18
Walt Disney Co +0.52% $91.82
UnitedHealth Group +0.38% $480.62
Amgen Inc +0.26% $223.99
Boeing Co +0.2% $205.91
International Business Machines +0.19% $127.50
Salesforce -0.05% $210.26

FALLERS
Nike -3.99% $110.18
Procter & Gamble -2.62% $149.16
Coca-Cola Company -2.1% $61.51
McDonald’s Corporation -2.1% $289.35
Chevron Corporation -1.8% $152.44
Travelers Companies -1.43% $181.10
Walmart -0.88% $148.59
Visa Inc -0.87% $231.38
Merck & Co -0.87% $114.49
JPMorgan Chase & Co -0.83% $138.03

S&P 500 +0.65 (+0.02%) 4,192.63

RISERS
Match Group +6.72% $33.98
Epam Systems +6.53% $263.67
Pfizer Inc +5.39% $38.75
Gen Digital +5.31% $17.06
Zions Bancorporation +4.93% $28.09
Tesla Inc +4.85% $188.87
KeyCorp +4.68% $10.28
Lincoln National Corporation +4.34% $21.86
Generac Holdings +3.95% $118.28
Citizens Financial Group +3.86% $27.19

FALLERS
Nike -3.99% $110.18
Everest Re Group -3.98% $361.49
Arch Capital Group -3.32% $73.50
Kimberly-Clark Corporation -2.99% $140.70
American Airlines Group -2.97% $14.38
Micron Technology -2.85% $66.23
O’Reilly Automotive -2.74% $928.14
Lennar Corporation -2.72% $110.50
PepsiCo -2.71% $186.64
Procter & Gamble -2.62% $149.16

NASDAQ COMPOSITE +62.88 (+0.5%) 12,720.78

RISERS
Atlassian Corporation +7.75% $158.38
Match Group +6.72% $33.98
Lucid Group +6.55% $7.65
Tesla Inc +4.85% $188.87
DocuSign Inc +4.39% $55.45
PDD Holdings +4.15% $63.04
PayPal Holdings +3.46% $63.03
Align Technology +3.38% $300.83
Zoom Video Communications +2.94% $71.41
Zscaler Inc +2.87% $128.86

FALLERS
Micron Technology -2.85% $66.23
O’Reilly Automotive -2.74% $928.14
PepsiCo -2.71% $186.64
Booking Holdings -2.52% $2,695.62
Starbucks Corporation -2.47% $102.90
Cadence Design Systems -2.34% $211.63
Marriott International -2.1% $174.68
Verisk Analytics -1.74% $218.25
Synopsys Inc -1.67% $401.68
Mondelez International -1.54% $75.87