(MENAFN- Baystreet.ca) Hope for Debt Ceiling Grows, Stocks Tower
Stocks rose Friday as optimism around a potential U.S. debt ceiling deal increased.
The Dow Jones Industrials leaped 350.79 points, or 1.1%, mid-morning Friday to 33,115.44.
The S&P 500 gained 46.18 points, or 1.1%, to 4,197.46.
The NASDAQ popped 196.6 points, or 1.6%, to 12,894.69.
Debt ceiling negotiations weighed on market sentiment this week. The S&P 500 entered Friday's session down about 1% week to date, while the Dow lost nearly 2% in that time. The NASDAQ was higher by 0.3%.
House Speaker Kevin McCarthy left the Capitol Thursday night saying a deal had not been reached yet. However, sources told news outlets that the White House and McCarthy are close to reaching an agreement that would raise the U.S. debt ceiling for two years.
Treasury Secretary Janet Yellen has warned that the U.S. could default on its debt as soon as June 1 if the debt ceiling is not raised.
The corporate earnings season is drawing to a close, but a handful of stocks were moving in response to their reports after the bell. Retailer Gap captured more than 12%, and semiconductor stock Marvell Technology rose more than 22.7%, while Ulta Beauty tumbled 10%.
New data out Friday morning showed inflation rose more than expected in April. The personal consumption expenditures index, the Federal Reserve's preferred gauge of price pressures, increased 0.4% last month and 4.7% from a year earlier.
Prices for the 10-year Treasury slumped a bit, raising yields to 3.83% from Thursday's 3.82%. Treasury prices and yields move in opposite directions.
Oil prices recovered 88 cents to $72.71 U.S. a barrel.
Gold prices surged $5.90 to $1,949.60 U.S. an ounce.
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