Daily Market Commentary

May 25, 2023

Bonds & Stocks
The rate on repurchase agreements for dollars jumped Thursday the debt-ceiling impasse spurred cash lenders to withdraw from making overnight loans backed by Treasury securities. The general collateral repo rate first traded at 5.14% before climbing to 5.15%, 5.16%, 5.17% and 5.18%, according to ICAP. By comparison, the offering rate on the Federal Reserve’s overnight reverse repo facility is 5.05%.

The Nasdaq 100 rallied and chipmakers soared Thursday as a bullish sales forecast from Nvidia Corp. ignited gains in companies linked to the frenzy for artificial intelligence stocks. Nvidia shares soared 30% at the open after its forecast for surging revenue surprised even the most optimistic analysts on Wall Street, propelling the company to the cusp of a $1 trillion market value. The Nasdaq 100 added 2.0% and ASM International NV led technology sector gains on the Stoxx 600 Index.

Ukrainian President Volodymyr Zelenskiy said Russia may be switching to so-called mixed strikes with varying types of drones and missiles as the nation’s air defense said it shot down 36 loitering drones on Thursday.  The attacks by the Iranian-made Shahed drones likely targeted crucial infrastructure and military targets in western Ukraine, including the 12th attack on Kyiv this month. Air-raid sirens went off across the country.

The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy, or when to buy or sell.