US open: Stocks jump amid reports of progress in debt ceiling talks
By Alexander Bueso
Date: Friday 26 May 2023
(Sharecast News) - Stocks on Wall Street were trading on the front foot at the end of the week as investors assessed signs of progress in debt ceiling negotiations.
At 1444 BST, the Dow Jones Industrial Average was up by 0.79% at 33,028.72, alongside a gain of 0.64% on the S&P 500 to 4,177.42.
The Nasdaq Composite meanwhile was up 0.70% to 12,787.57.
Neil Wilson, chief market analyst at Markets.com, said: "Debt ceiling talks have made substantial progress it seems, with officials saying that President Biden and Republican congressional leader McCarthy close to striking a two-year deal to raise the debt ceiling.
"This would cap spending on certain discretionary areas such as education (!), and Reuters says two sides are only $70bn apart...like I said a deal will be done, only a question of when; either before the June X date or it drags out over the summer."
Investors were also digesting stronger than expected readings on personal consumption and prices.
According to the Department of Commerce, personal consumption expenditures jumped by 0.8% month-on-month in April.
In parallel, both the headline and core price deflators for personal consumption expenditures increase by 0.4% when compared to March.
Commerce also reported that the US visible trade deficit surged 17% in April when compared to the month before to reach -$96.8bn (consensus: -$85.6bn) as exports slid by 5.5% over the month.
Still due out at 1500 BST was the University of Michigan's consumer confidence index for May.
In corporate news, Big Lots shares were getting pummeled, falling 18% following the company's first-quarter earnings report.
Sporting goods retailer Hibbett slid 10% after its Q1 results disappointed.
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