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U.S. stocks are rising as debt ceiling deal comes into focus; Marvell pops

Published 05/26/2023, 10:05 AM
Updated 05/26/2023, 10:49 AM
© Reuters.

© Reuters.

Investing.com -- U.S. stocks are rising as investors await the outcome of debt ceiling negotiations.

At 10:50 ET (14:50 GMT), the Dow Jones Industrial Average was up 332 points or 1%, while the S&P 500 was up 1.1% and the NASDAQ Composite was up 1.6%.

Lawmakers appear close to announcing a framework for an agreement, though the debt ceiling deadline of early June is still looming as Congress takes a break for the Memorial Day weekend.

Deputy Treasury Secretary Wally Adeyemo said lawmakers are making progress in reaching a deal. Uncertainty has weighed on stocks this week, with the S&P and the Dow on course for their worst week in about two months.

The S&P and the Dow are on course for their worst weekly performance in over two months as debt ceiling talks have been dragging on in Washington even as the June 1 deadline looms large.

The Commerce Department's personal consumption expenditures price index, thought to be the Federal Reserve's preferred measure of inflation, rose 0.4% in April, as expected. Excluding volatile food and energy, the core PCE price index, rose 0.4% last month, higher than expectations of 0.3%.

Michigan consumer sentiment was a stronger-than-expected 59.2 for May but still down from a prior reading.

More futures traders are now predicting another quarter of a percentage point interest rate increase by the Federal Reserve when it meets next month. Less than half of traders are predicting a pause.

Shares of Ford Motor Company (NYSE:F) rose 7% after it said its electric vehicle owners would have access to Tesla’s superchargers in North America early next year.

Casual clothing retailer Gap Inc (NYSE:GPS) shares rose 9.8% after it posted a surprise profit for the first quarter, while shares of Ulta Beauty (NASDAQ:ULTA) shed11% after it cut its operating margin forecast for the year.

Shares of chip maker Marvell Technology Group Ltd (NASDAQ:MRVL) jumped 27.8% after it predicted its revenue from artificial intelligence would double.

Latest comments

Well done to all the short sellers. You have played this well. The sea of green cannot be stopped. GO TECH! ayayaya
I am a robot im virtually tea bagging you hehe hehe
I think republicans will use this opportunity to demand for fresh elections.
Take it easy. The US election system uses fixed dates only, no snap elections.
I googled debt ceiling and the news articles there aren't so optimistic.
I love how the democrats talk about how the republicans are fascists when they 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 pollical opponents while halting and hiding investigations against fellow democrats. 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.
Nothing like hyper-valuation of growth stocks while the country is in massive debt at risk of default and banks are literally crashing with more bank funds have been lost already this year than all of 2008.
Sources say both sides cannot come to an agreement of spending cuts. Negotiation has ended for the day
Marvell only has a few thousand employees and were laying people off. Doesn't seem too solid.
Yes but where are the chips actually made?
What if the debt ceiling deal is at an impasse by the end of the day?
when not if
most important data cpi and not a single word....
The words is fourty three hundred is on the horizon home slice. GO TECH! ayayaya
here is the thing if any of you has read W.D.Gann then market is going.to crash somewhere in july till then you can hold tight.....
yes. irrational market right now. gotta careful for this year.
anubhav, what Gann indicators are you using to come to that conclusion...
Creating bubbles. Shame on market makers
yeah, this AI thing is hilarious - not just the market makers - the CEOs of all the chip companies talking up AI every two minutes - poor retail investors getting succured in before the rug pull next week
Market is up 10% over the past 30 days as the country sits on its highest debt level in human history at risk of default while inflation and interest rates are rising.
Total garbage market. No wonder we're a laughing stock (no pun intended, I guess) around the world. Pretty sad when other countries stock markets respond for RATIONALLY to concerns in the US. The only conclusion is that this market is 100% a perfected, legal scam. Nobody should participate in this ruse. Deprive them of their fodder. This HAS to change.
 True, I do mostly play the NQ, however it is worth noting that banking stocks have been the biggest drag on the Dow and other indices. My argument is more that most equities are significantly overbought and if you take out the banking stocks that have crashed then even the Dow would look more like the NQ. The fact that banks are crashing but other equities are rising should be a huge red flag.
 You do know the market is global, right
Was planning to hold into next week but taking profits here. I had bought some long positions for a pump after the debt deal, but they went ahead and pumped this market massively this week so why would I take on unnecessary risk going into next week. Buy the rumor, sell the news. Plus, "Federal Reserve's preferred inflation gauge accelerated in April" "US consumer spending surges in April; inflation heats up" so expecting Fed to come talk of more rate hikes soon and cause the market to dump.
 I have already made my money on this play. Not going to give it back due to greed. Market is already up 25% YTD with rapidly rising inflation and poor fiscal situation. Feel free to keep holding, though, up to you. Thank you for letting me get out first.
 CPI/PCE average trend this year is deflationary. AI / tech sector is booming this year as you saw yesterday with NVDA. Selling now you are taking a short term capital gains tax hit. Just be sensible and hold long and stay with us. Don't bite the hand that feeds you by using it for a quick cash cow. If you don't believe in the companies you invest in, you should just stick to fixed income.
 Last year inflation was at 8%+, it is false to suggest that just because it was not 8% this year means that we are in a deflationary cycle. Fed is very likely to come in now and push more rate hikes. I wish you the best, I made my money this play. I was in it for a pump regarding the debt deal and am not going to risk holding over the weekend because they already pumped the markets prior to the deal. I think the market is overbought at the moment relative to all of the negative fiscal conditions and ongoing political uncertainty.
Excuse me short sellers.. can you say sea of green? ROFL. WE WON! GO TECH! ayayaya
Xauusd sell ??!
red end of day. collapse on Monday
Bears don't do details. Armageddon or nothing.
futures don't open Monday night?
they do
Theres no deal on debt ceiling..
Yes correct , Argentina V2.0
Learn to read economic signals and market analysis.
so silly headline... not interested in focusing on inflation rising
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