important point
- Markets rose on Friday, May 26, on signs that a deal on raising the US debt ceiling is near.
- Shares of AI companies rose again after Marvel Technology reported a surge in demand.
- Ulta Beauty shares fell after retailers warned that post-pandemic growth would slow.
US stocks ended the week higher on optimism that the White House and congressional negotiators are nearing a deal to raise the federal debt ceiling and avoid a government default. Another report showing surging demand for artificial intelligence (AI) fueled the market frenzy, sending tech stocks higher. The Nasdaq rose 2%, while the Dow and S&P 500 rose 1%. The S&P 500 and Nasdaq have risen this week, but the Dow has fallen.
It was another great day for AI stocks after Marvel Technology (MRVL) said it expects sales of its AI products to surge. Shares surged 32%. Shares of other companies in the sector, including Arista Networks (ANET) and Monolithic Power Systems (MPWR), have become among the top performers in the S&P 500. Nvidia (NVDA) shares also added to yesterday’s gains as chipmakers posted bullish outlooks on AI sales.
Shares of both Ford (F) and Tesla (TSLA) rose after they struck deals to give owners of Ford electric vehicles access to Tesla’s supercharger. Shari Redstone National Amusements, the controlling shareholder of Paramount Global (PARA), poured $125 million into the media company, boosting the company’s share price. Shares of Gap (GPS) surged after the clothing retailer announced an unexpected quarterly profit.
Shares of beauty retailer Ulta Beauty (ULTA) fell after it cut its full-year operating margin outlook and warned that strong post-pandemic growth would slow. Eversource Energy (ES) fell after New England’s largest utility lost more than $200 million after it canceled plans to build an offshore wind farm off the coast of Massachusetts. Medtronic (MDT) acquired wearable insulin patch maker EOFlow for $738 million, sending the stock price down.
Crude oil and gold futures rose. 10-year Treasury yields were little changed. The US dollar rose against the yen, but fell against the euro and pound. Bitcoin, Ether and most other major cryptocurrencies have increased in price.
