U.S. equities finished the week on a high note on optimism that White House and congressional negotiators are close to an agreement to raise the federal debt ceiling and avoid a government default. Adding to the market enthusiasm was another report showing booming demand for artificial intelligence (AI), sending tech shares higher. The Nasdaq jumped 2%, while the Dow and S&P 500 added 1%. For the week, the S&P 500 and Nasdaq were in the green, but the Dow lost ground.
It was another big day for AI-related stocks after Marvell Technology (MRVL) indicated it expects sales of its AI products to skyrocket. Shares soared 32%. Shares of others in the sector, including Arista Networks (ANET) and Monolithic Power Systems (MPWR), were among the best-performing stocks in the S&P 500. Nvidia (NVDA) shares added to yesterday’s gains when the chipmaker also gave a bullish outlook for AI sales.
Shares of both Ford (F) and Tesla (TSLA) advanced after the two carmakers struck a deal giving owners of Ford electric vehicles access to Tesla’s superchargers. Paramount Global’s (PARA) controlling shareholder, Shari Redstone’s National Amusements, pumped $125 million into the media firm, boosting its shares. Gap (GPS) shares soared as the clothing retailer reported a surprise quarterly profit.
Shares of Ulta Beauty (ULTA) sank after the beauty products retailer cut its full-year operating margin outlook, and warned that its strong post-pandemic growth will slow. Eversource Energy (ES) dropped as New England’s largest electric utility took a more than $200 million loss after ending plans to build an offshore wind farm off the Massachusetts coast. Medtronic Plc (MDT) purchased wearable insulin patch manufacturer EOFlow for $738 million, and its shares fell.
Oil and gold futures were up. The yield on the 10-year Treasury note was little changed. The U.S. dollar gained on the yen, but lost ground to the euro and pound. Prices for Bitcoin, Ether, and most other major cryptocurrencies climbed.