Meanwhile, Treasury yields rose on speculation that the Federal Reserve will need to raise rates again as inflation remains high.
Technological ones soar in Wall Street this Thursday, May 18, given signs that US legislators are advancing in talks on the debt ceiling and will be able to avoid default.
The Dow Jones gained 0.3% to 33,535.91 points, the S&P 500 rose 0.9% to 4,198.05 points, while the Nasdaq 100 rose 1.5% to 12,688.84 points, its highest level since August 2022 after Speaker Kevin McCarthy said he expects the House to consider a deal next week.
“The negotiators are not only trying to get a deal done quickly, but the effort is to get a full deal done so that only a debt ceiling increase is needed.said Dan Clifton of Strategas.
Meanwhile, Treasury yields rose on speculation that the Federal Reserve will need to raise rates again as inflation remains high. Traders raised bets on a June rise to around 40% after Fed Bank of Dallas President Lorie Logan said the case for a pause next month is unclear. Central bank governor Philip Jefferson suggested that he is watching for the lagged impact of tightening.
The debt ceiling has diverted attention from uncertainty about the Federal Reserve’s stance on interest rates.
Economic data showed that the number of Americans filing new jobless claims fell more than expected last week, suggesting that the labor market remains tight, giving the Fed more room to continue raising rates.
Source: Ambito
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