(Updates prices to open, adds comments, shares of Paramount Global)
Biden, McCarthy close on US debt ceiling deal.
Marvel technology jumped on the best prediction
They have agreed to access Tesla charging stations
Indexes: Dow 0.63%, S&P 0.57%, Nasdaq 0.80%
By Shreyashi Sanyal and Shriti Achar
May 26 (Reuters) –
Wall Street’s major indexes closed on Friday on progress in negotiations to raise the U.S. debt ceiling, with data pointing to slightly warmer inflation than investors expected.
After several rounds of talks, President Joe Biden and top congressional Republican Kevin McCarthy reached an agreement to raise the government’s $31.4 trillion debt ceiling for two years, limiting spending on most items, a US official told Reuters.
Deputy Secretary of the Treasury
Wally Adeyemo said on Friday that lawmakers are making progress.
Despite gains in morning trade, the S&P 500 index and the Dow Jones industrial average were on pace for weekly losses, weighed down by protracted debt ceiling talks ahead of a June 1 deadline. The Dow is poised to snap a 5-day losing streak.
“I hope the situation will be resolved, because US debt is simply not an option. That is, since the solution is a consensus, default will cause a very severe market reaction,” he said. Global strategist in chief asset management.
The data showed that the Commerce Department’s Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, remained at 0.4% for April.
The PCE price index, which excludes the volatile food and energy components, however, rose 0.4% last month, more than the 0.3% expected.
Money market traders see a 25-basis-point rate hike by the Fed at a June policy meeting as nearly 60%, up from about 40% before the data.
At 9:52 a.m. ET, the Dow Jones industrial average was up 205.14 points, or 0.63%, at 32,969.79, the S&P 500 was up 23.63 points, or 0.57%, at 4,174.91, and the Nasdaq Composite was up 6.102 points, or 6.102%, at 12,800.25.
Ford Motor Co. gained 2.5% after signing a deal to give customers access to more than 12,000 Tesla chargers in North America by early 2024. Tesla rose 1.9 percent.
Alta Beauty Inc fell 12.1% after the cosmetics retailer cut its annual operating margin forecast.
Chipmaker Marvell Technology Inc jumped 25.1% after forecasting a doubling of annual artificial intelligence (AI) revenue.
It comes as shares of Nvidia Corp., the world’s most valuable chipmaker, hit a record high on Thursday after being hit by high valuations. Nivea shares rose 0.3 percent.
Paramount Global rose 5.7% after the media conglomerate’s controlling shareholder National Entertainment received a $125 million investment and Loop Capital upgraded it to “hold.”
It outnumbered advancing decliners by a 1.72-to-1 ratio on the NYSE and a 1.49-to-1 ratio on the Nasdaq.
The S&P index hit 10 new 52-week highs and six new lows, while the Nasdaq hit 34 new highs and 50 new lows.
(Reporting by Shreyashi Sanyal and Sriti Achar A in Bengaluru Editing by Maju Samuel and Vinay Dwivedi)