Important points
- Markets rose on Friday, May 26, on signs that an agreement to raise the US debt ceiling is near.
- Shares of AI companies rose again after Marvell Technology reported a surge in demand.
- Ulta Beauty shares fell after the retailer warned that post-pandemic growth would slow.
U.S. stocks ended the week higher on optimism that White House and Congressional negotiators are nearing a deal to raise the federal debt ceiling and avoid government default. Another report showing surging demand for artificial intelligence (AI) added to the market frenzy, sending tech stocks higher. The Nasdaq rose 2%, and the Dow and S&P 500 rose 1%. The S&P 500 and Nasdaq rose this week, but the Dow lost ground.
It was another great day for AI stocks, as Marvell Technology (MRVL) said it expects sales of its AI products to soar. The stock price soared 32%. Other companies in the sector, including Arista Networks (ANET) and Monolithic Power Systems (MPWR), were among the S&P 500's best performers. Nvidia (NVDA) stock also added to its gains yesterday as the chipmaker gave a bullish outlook due to AI sales.
Shares of Ford (F) and Tesla (TSLA) rose after the automakers struck a deal to give owners of Ford electric vehicles access to Tesla's Superchargers. Shari Redstone National Amusements, the controlling shareholder of Paramount Global (PARA), pumped $125 million into the media company, boosting its stock price. Gap (GPS) stock soared after the clothing retailer reported a disappointing quarterly profit.
Shares of Ulta Beauty (ULTA) fell after the beauty products retailer cut its full-year operating profit outlook and warned that strong post-pandemic growth would slow. Eversource Energy (ES) fell as New England's largest power company suffered more than $200 million in losses after canceling plans to build an offshore wind farm off the coast of Massachusetts. Medtronic (MDT) acquired wearable insulin patch maker EOFlow for $738 million, sending its stock price down.
Oil futures and gold futures rose. The 10-year government bond yield was little changed. The US dollar rose against the yen but fell against the euro and pound. The prices of Bitcoin, Ether, and most other major cryptocurrencies have increased.
