Breaking News
Investing Pro 0
🚨 NDVA surged 43%. This AI Chipmaker Could Be Next See Analysis

Stock market today: Dow ends week lower despite rally on debt-ceiling optimism

Published May 26, 2023 04:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
US500
-0.52%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-0.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MSFT
-0.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
F
-4.41%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JPM
-1.46%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- The Dow ended the week lower despite rallying on Friday as optimism grows that negotiators in Washington are closing in on a debt-ceiling agreement that is needed to prevent the U.S. from defaulting on its debt payments.

The Dow Jones Industrial Average rose 1%, or 328 points, though ended the week in the red.The S&P 500 was up 1.3%, and the Nasdaq added 2.2%, notching its best week since mid-March.

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.

The countdown to a deal is being closely watched as the latest data showed the U.S. Treasury had about $38.8 billion in cash on Thursday that it uses to pay its bills, compared with an average balance of about $500B on hand.

Should a deal be announced by late Friday or on Saturday (May 27), Goldman Sachs believes this would "likely allow a House vote late Tuesday (May 30) or Wednesday (May 31).”

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 personal spending rose 0.8% in April, topping economists' estimates of 0.4%, while core PCE 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 65% of traders now expect the Fed to hike rates in June, compared with just 15% last week, according to Investing.com’s Fed Rate Monitor Tool.

Treasury yields 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:META), Apple Inc (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) pushed big tech higher, while Amazon.com Inc (NASDAQ:AMZN) and Tesla Inc (NASDAQ:TSLA) were the biggest gainers in consumer discretionary.

Tesla Inc gained about 5% after the electric vehicle maker announced a partnership with Ford Motor Company (NYSE:F) 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:NVDA) added to its rally from a day earlier, while Marvell Technology Group Ltd (NASDAQ:MRVL) surged 32% after estimating that revenue growth from artificial intelligence would at least double in fiscal 2024.

Gap Inc (NYSE:GPS) was also a big winner on the earnings front, rallying 12% after its quarterly results, released Thursday, showed improving margins.

“[W]e believe that management execution within the core Old Navy banner is beginning to improve with better assortments and an improvement in market share gains in women’s and baby,” Goldman Sachs said in a note.

Ulta Beauty (NASDAQ:ULTA), meanwhile, fell 13% after the beauty retailer’s cut to its margin outlook offset first-quarter results that beat on both the top and bottom lines.

Still, the plunge in stock could prove short-term pain but long-term gain, UBS says, estimating that Ulta Beauty "will resume an upward trajectory over the course of the year…as the market sees signs that it can maintain its double-digit EPS algo for an extended period."

In other news, JPMorgan Chase & Co (NYSE:JPM) gained 1% as the Wall Street bank reportedly cut about 500 jobs this week, CNBC reported, citing unnamed sources.

Stock market today: Dow ends week lower despite rally on debt-ceiling optimism
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (9)
cb cb
cb cb May 26, 2023 8:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Only great news top of the home page during market hours. Bad news posted at the top after market close
marki bigjohnson
marki bigjohnson May 26, 2023 7:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
just say what it is. momentum and algo trading. this bubble is ready to pop. Every data point is flashing hard recession. buckle up for a crash
Ac Tektrader
Ac Tektrader May 26, 2023 6:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
with today's move, the S&P 500 is now targeting 4305, if the debt ceiling is resolved...
Dave Jones
Dave Jones May 26, 2023 5:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
My heads spinning from the headline!
dylan mulvaney
dylan mulvaney May 26, 2023 5:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They are so optimistic about the debt ceiling that this is also a headline on the front page  "US debt ceiling talks struggle before deadline; 'major issues' remain"...also things are going so great that they have had to push back the deadline from June 1 to June. Oh yeah, and Yellen "Treasury could run out of money by June 5 without debt-ceiling deal: Yellen"
dylan mulvaney
dylan mulvaney May 26, 2023 5:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
*June 5
dylan mulvaney
dylan mulvaney May 26, 2023 5:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I love how democrats claim republicans are fascists when democrats have been doing nothing but trying to tear down all the checks and balances. They want to try and allow Biden to unilaterally overturn Congress on the debt ceiling because they are not getting their way. They want to try and expand the Supreme Court because they are not getting their way. They wanted to try and extend the "COVID emergency" to try and allow Biden to unlawfully push student loan forgiveness. They engage in malicious prosecution of political opponents while halting and hiding investigations against fellow democrats. Democrats openly collude with the media while trying to shut down media that provides unfavorable coverage similar to how dictators in North Korea function. The democrat party is the party of fascism and we are all paying the price. Biden has a lot of donors to launder money to and is why he wants to keep with his reckless spending and hyper inflation.
covid hoax
covid hoax May 26, 2023 4:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Show me treasuries over 12% interest and I will go from 30% Long Term Treasuries / 70% cash to 100% Long Term Treasuries.
PAULIUS MATIUSOVAS
PAULIUS MATIUSOVAS May 26, 2023 4:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
uS cannot default on debt payments. interest is not bigger than income. it can only stop other expenses which are unnecessary anyway
Casador Del Oso
Casador Del Oso May 26, 2023 4:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
50bps in June. 6% terminal rate.
Casador Del Oso
Casador Del Oso May 26, 2023 4:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Unfortunately, it's inevitable.
Ge K
Ge K May 26, 2023 4:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
TSLA long…. cant lose. Thanks F.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email