Welcometo Architas

Clouds of uncertainty still hang over financial markets, whether about inflation, recession or the peak in the interest rate cycle. Throw in the brinkmanship surrounding the US debt ceiling and it’s no wonder markets have been range bound in recent months.

Semiconductor stocks surged as artificial intelligence (AI) and its applications became the focus of investor interest in May. Shares of NVIDIA surged as it raised its sales guidance significantly.

Financial markets have traded in a tight range over recent weeks. Market professionals put this down to the stand-off over the US debt ceiling, which prompted ratings agency Fitch to put the US on watch for a possible downgrade of its AAA rating. But what is this ceiling?