Tuesday, 30 May 2023


S&P 500 jumps as Washington closes in on debt-ceiling agreement, tech rallies By Investing.com

Stock market today: Dow wobbles on mixed economic data ahead of jobs report

© Reuters.

Investing.com — The S&P 500 jumped Friday as negotiators in Washington inched closer to a debt-ceiling agreement that is needed to prevent the U.S. from defaulting on its debt payments.

The was up 1.3%, the rose 1%, or 330 points, the added 2%.

Republican and White House negotiators appear closer than ever to a breakthrough in debt-ceiling talks after narrowing on a potential deal that seeks to raise the debt limit and cap federal spending for two years through 2024, according to media reports.

“[W]e think the odds are highest that a deal is announced late Friday (May 26) or on Saturday (May 27),” Goldman Sachs said. “If so, this would likely allow a House vote late Tuesday (May 30) or Wednesday (May 31).”

The spending caps under the emerging agreement do not appear likely to “meaningfully affect the macroeconomic outlook,” it added.

The growing optimism of a breakthrough on debt-ceiling talks bolstered investor sentiment on stocks even as stronger consumer spending and inflation data tipped the scales in favor of a June rate hike.

Monthly rose 0.8% in April, topping economists’ estimates of 0.4%, while rose 0.4% and also came in hotter than expected.

“The stronger-than-expected showing in price pressures and consumer spending will make it increasingly more difficult for the Fed to pause in June,” Sitfel said in a note.

About 70% of traders now expect the Fed to hike rates in June, compared with just 15% last week, according to Investing.com’s

rose in anticipation of further hikes, but that did little to dent optimism in interest rate sectors of the market including tech and consumer discretionary.

Meta Platforms Inc (NASDAQ:), Apple Inc (NASDAQ:), and Microsoft (NASDAQ:) pushed big tech higher, while Amazon.com Inc (NASDAQ:) and Tesla Inc (NASDAQ:) were the biggest gainers in consumer discretionary.

Tesla Inc (NASDAQ:) gained 5% after the electric vehicle maker announced a partnership with Ford Motor Company (NYSE:) that would allow the latter access to its Superchargers in the U.S. and Canada.

Tech was also helped by a second day of strong gains in semiconductor stocks. NVIDIA Corporation (NASDAQ:) added to its rally from a day earlier, while Marvell Technology Group Ltd (NASDAQ:) surged 30% after estimating that revenue growth from artificial intelligence would at least double in fiscal 2024.

Gap Inc (NYSE:) was also a big winner on the earnings front, rallying 13% after its quarterly , released…

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