Bonds & Stocks
Stocks gave back some of their monthly gains on the final trading day of May amid speculation that the market has run too far, too fast as global economy risks loom. The group of big tech names that have led the recent equity rally started rolling over this week, with Nvidia Corp. down 1% Wednesday after almost tripling in value this year. While many on Wall Street say that doesn't mean the enthusiasm for the sector will fade, there's been growing concern about the fact that other industries haven't been able to catch up in a significant way.
Economy
US President Joe Biden and House Speaker Kevin McCarthy struck a deal on the federal debt ceiling over the weekend that, if approved by Congress, will avert a disastrous debt default. Less clear is what the agreement means for an economy that's more or less shrugged off 5 percentage points' worth of interest-rate hikes, or what it will do for government borrowing, which many analysts warn is on an unsustainable trajectory. As spelled out in a 99-page document, the agreement would suspend the debt ceiling until Jan. 1, 2025, while capping discretionary spending for the next two years. The White House has said the deal will reduce outlays by about $1 trillion over a decade, while the Republican Party argues the cuts will amount to twice that.
World
Jamie Dimon said JPMorgan Chase & Co. will be in China in both good and bad times, remaining committed to doing business in the Communist Party-ruled nation as political tensions grow.
Echoing comments made by US officials, the chief executive officer of the largest US bank said on Wednesday that he doesn't foresee a decoupling between the West and China, while acknowledging that the situation is "far more complex now."