Wall Street is jumping on the hope of a successful debt plan

Wall Street is jumping on the hope of a successful debt plan

* Biden, McCarthy are close to an agreement on the US debt limit

* Marvell technology jumps after positive forecast

* Ford takes action after plan to access Tesla charging stations

* Top indices: Dow 0.91%, S&P 1.15%, Nasdaq 1.94%.

(Price updates continue, chart added, key moves on Nasdaq, Philadelphia Semiconductor SE index, comments)

May 26 (Reuters) – Wall Street’s main indexes rose on Friday on progress in talks to raise the U.S. debt ceiling, with investors shrugging off data pointing to slightly higher-than-expected inflation.

After several rounds of talks, President Joe Biden and House Speaker Kevin McCarthy moved closer to an agreement to raise the debt limit to $31.4 trillion over two years while cutting spending on many products, a US official told Reuters.

McCarthy reconfirmed on Friday that talks, which have been going on almost all day, had continued on Thursday.

The Dow Jones Industrial Average was poised to snap a five-day losing streak, while the Nasdaq hit its highest level since mid-August earlier in the session.

“The market is very responsive to the expected deal and it looks like the consensus framework is close and we have a relief meeting,” said David Sadkin, chairman of Bel Air Investment Advisors.

Still, the S&P 500 and Dow were posting weekly losses, pressured by protracted debt ceiling talks ahead of the June 1 deadline.

The S&P 500 technology sector rose 2.2%, with chip companies leading the gains. The Philadelphia Semiconductor Index was up 4.8% by midday and was on course for its best two-week performance since April 2020.

Chipmaker Marvell Technology Inc jumped 27.7% after forecasting its annual artificial intelligence (AI) revenue would double.

This comes as shares of the world’s most valuable chipmaker, Nvidia Corp, soared on Thursday following its big forecast. Shares of Nvidia rose 1.8%.

At 12:07 am ET, the Dow Jones Industrial Average was up 298.77 points, or 0.91%, at 33,063.42, the S&P 500 was up 47.65 points, or 1.15%, at 4,198.93, and the Nasdaq Composite was up 47.65 points, or 1.15%, at 4,198.93. %, in 12,944.93.

Data showed that US consumer spending rose more than expected in April and inflation picked up, which could prompt the Federal Reserve to raise rates again next month.

“We still have inflation, we still have high interest rates and that will continue to be a problem for the market until the Federal Reserve is put on hold,” Sadkin added.

Traders now see a more than 60% chance of a 25 basis point hike from the Fed at its June policy meeting, versus around 40% before the data.

Ford Motor Co gained 7.0% after signing an agreement to give its customers access to more than 12,000 Superchargers from Tesla Inc. by early 2024. in North America. Tesla jumped 5.3%.

Ulta Beauty Inc fell 12.0% after the cosmetics retailer cut its full-year operating margin forecast.

Paramount Global added 6.3% after the majority shareholder of the media conglomerate, National Amusements, received a $125 million investment.

The number of additions was 2.05 to 1 on the NYSE and 1.70 to 1 on the Nasdaq.

The S&P index recorded 15 new 52-week highs and 14 new lows, while the Nasdaq recorded 55 new highs and 84 new lows.