• Will NVIDIA's record highs continue to surge due to A.I. chip demand?
• Is the U.S. nearing a debt ceiling deal as the deadline approaches?
• How do stock rights and warrants offer unique opportunities for investors?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
32,760.67 (-0.12%)
4150.36 (+0.85%)
12,708.60 (+1.80%)
Opening price as of 05/25/2023 compared to last close
IN THE HEADLINES
NVIDIA set for record highs due to A.I. chip demand.
NVIDIA nears $1 trillion market cap with a soaring share price driven by strong earnings and its position as an A.I. chip supplier. Analysts raise price targets as demand accelerates. Other chipmakers struggle to match NVIDIA's growth. Read more
Progress is made in debt ceiling talks, but the House will leave town without reaching a deal.
The U.S. faces a June 1 deadline for raising the debt ceiling to avoid default. House Speaker Kevin McCarthy remains optimistic, but guidance given to House members suggests a lack of imminent agreement. Fitch Ratings puts the U.S.'s triple-A status on "rating watch negative," adding to the urgency. Read more
Fed agreed need for more rate hikes after May meeting was “less certain”
Federal Reserve officials expressed uncertainty about the need for further interest rate increases during their May meeting. Some believed the recent rate hike could be the last, while others highlighted the risks of persistent inflation. This supports the expectation that the Fed might pause its rate-hike campaign at the upcoming June meeting. Read more
TradeUP TIDBITS
“We absolutely cannot protect the economy from a debt default…. The reserve currency is determined by investors around the world. They are voting on which economy they have most confidence in. Debt ceiling standoffs erode confidence.” –Neel Kashkari, President of the Federal Reserve Bank of Minneapolis
“It’s time for lawmakers to end the drama and come to terms and increase the debt limit. There has been little economic fallout from the political back and forth so far. But that is set to change quickly.” –Mark Zandi, Chief Economist of Moody’s Analytics
Rights & Warrants:
Stock rights are instruments issued by companies to allow existing shareholders to maintain their ownership stake. The subscription price of rights is usually offered at a discounted rate compared to the current market value, and the maturity period is typically short-term (30-45 days).
Similarly, warrants grant holders the option to purchase the issuer's common stock at a predetermined price (subscription price) in the future. Warrants often have a long maturity period, sometimes spanning several years or even having a perpetual life. The subscription price for warrants is typically set higher than the current market price of the stock. Both rights and warrants can be traded on the open market.
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