U.S. stocks closed higher on Friday as talks to raise the U.S. debt ceiling moved forward, while tech stocks rose for a second straight day on hopes about artificial intelligence.
After several rounds of negotiations, it appears that US President Joe Biden and top Republican Congressman Kevin McCarthy are close to reaching an agreement to raise the federal debt limit by $31.4 trillion over two years while cutting spending. many, a US official told Reuters.
The Dow Jones snapped a five-day losing streak, while the Nasdaq closed at its highest level since August 2022.
The Philadelphia Semiconductor Index continued its upward trend for the second day in a row. In light of recent AI-related excitement, Marvell Technology Inc jumped after the chipmaker said it would increase its annual AI-related revenue.
The debt ceiling talks were closely watched by investors as Biden and McCarthy still appeared to be at odds on several issues and the US stock market was closed on Monday for the Memorial Day holiday.
“All indications are that a deal will be reached and this meeting will go ahead, but if we get through the weekend and we don’t get a deal or it falls apart in some way, then we’re going to wake up Tuesday morning with a very big loss,” said Scott Ladner, chief investment officer. at Horizon Investments in Charlotte, North Carolina.
Nvidia Corp. rose further, adding an additional 24% on Thursday after a forecast of explosions and lifting its market value to about $960 billion, according to Refinitiv.
The S&P 500 rose 1.30% to close at 4,205.45. The Nasdaq gained 2.19% to 12,975.69, while the Dow Jones gained 1.00% to 33,093.34.
Data showed US consumer spending rose more than expected in April and inflation picked up, which could prompt the Federal Reserve to raise interest rates again next month.
Investors now see a 60% chance of a 25-point hike by the Fed at the June meeting, up from about 40% before the data, according to CME’s FedWatch tool.
Ford Motor jumped after signing a deal that gives customers access to more than 12,000 Tesla Inc Superchargers in North America by early 2024. Tesla jumped 6.7 percent.
Ulta Beauty Inc fell after the cosmetics retailer cut its full-year operating margin forecast.
moneyreview.gr and information from Reuters