Uncertainty surrounds the debt ceiling negotiations, poor corporate earnings reports from companies and higher US bond yields.

 After Market | May 16, 2023

• Uncertainty surrounds the debt ceiling negotiations, poor corporate earnings reports from companies like Home Depot, and higher US bond yields. Additionally, China's economic data for April fell short of expectations, leading to selling pressure on energy stocks. The US may default as early as June 1st, with Treasury Secretary Yellen warning that time is running out and urging Congress to resolve the debt ceiling issue quickly as there is no time to waste.
• Although the US Senate and House of Representatives passed a bill overturning the tariff exemption for solar panels, it was vetoed by President Biden.
• Microsoft led the tech stocks higher, as the EU's antitrust regulatory body approved Microsoft's $69 billion acquisition of Activision Blizzard.
• AMD attracted the favor of hedge funds, narrowing the decline in the semiconductor sector.
• The Dow Jones Industrial Average closed down over 330 points, while the S&P 500 fell over 0.6%. In the final minutes of trading, the Nasdaq and Philadelphia Semiconductor Index plummeted over 0.1%.
• The US Department of Commerce reported a 0.4% increase in retail sales for April, below market expectations of 0.8%. Core retail sales also increased by 0.4%, in line with market expectations.
• Considering persistent high inflation, the Federal Reserve may not have raised interest rates to a level sufficient to contain inflation.
• The International Energy Agency (IEA) released its monthly report, raising its global oil demand forecast for this year to 200,000 barrels per day, with total demand reaching 102 million barrels per day. This is due to faster-than-expected growth in China's demand, reaching a record high, while oil-producing countries struggle to increase production capacity to meet the demand.
• The European Union finally approved regulations for the world's first comprehensive regulation of crypto assets, which is expected to be implemented starting in 2024. This puts pressure on countries like the UK and the US to catch up.