Key things
- Markets opened Friday, May 26, on signs that a deal to raise the US debt ceiling is close.
- Shares of AI-related companies jumped again as Marvell Technology reported rising demand.
- Shares of Ulta Beauty fell after the retailer warned that its post-pandemic growth would slow.
U.S. stocks ended the week on high optimism that White House and congressional negotiators are close to a deal to raise the federal debt ceiling and avoid a government default. Adding to the market’s enthusiasm was another report showing rising demand for artificial intelligence (AI), sending tech stocks higher. The Nasdaq jumped 2%, while the Dow and S&P 500 added 1%. The S&P 500 and Nasdaq were in the green this week, but the Dow lost ground.
It was another big day for AI-related stocks after Marvell Technology (MURLY) said it expects sales of its AI products to skyrocket. Shares rose 32%. Shares of others in the sector, including Arista Networks (SEW) and Monolithic energy systems (MPWR), were among the best-performing stocks in the S&P 500. Nvidia (NVDA) shares added to yesterday’s gains as the chip maker also gave a bullish AI sales outlook.
Stocks of both Fords (F) and Tesla (TSLA) advanced after the two automakers struck a deal that gave owners of Ford electric vehicles access to Tesla’s superchargers. Paramount Global (STEAM) controlling shareholder, Shari Redstone’s National Amusements, pumped $125 million into the media firm, boosting its stock. Space (GPS) shares rose as the apparel retailer reported a surprise quarterly profit.
Ulta Beauty Promotions (ULTA) fell after the beauty products retailer took a break for the year operating margin outlook and warned that its strong post-pandemic growth will slow. Eversource Energy (EC) fell as New England’s largest electric utility suffered a loss of more than $200 million after ending plans to build an offshore wind farm off the coast of Massachusetts. Medtronic Plc (MDT) bought wearable insulin patch maker EOFlow for $738 million and its stock fell.
Oil and gold futures rose. The yield on the 10-year Treasury note was little changed. The US dollar strengthened against the yen, but lost against the euro and pound. The prices of Bitcoin, Ether and most other major cryptocurrencies rose.
