Stocks rose higher on Friday as market participants grew hopeful that lawmakers in Washington, D.C. will reach a deal to raise the U.S. debt ceiling before the nation will be at risk of default.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
The Nasdaq outperformed this week, rising 2.5% and notching its fifth straight weekly gain. The S&P 500 also ended the week in the green, advancing 0.3, while the Dow fell 1% on the week.
On Friday, Reuters reported that President Joe Biden and House Speaker Kevin McCarthy are "closing in on a deal" to raise the U.S. debt ceiling, boosting the broader market higher on the day -- many analysts believe a deal ahead of the June 1 deadline estimated by Treasury Secretary Janet Yellen is the most likely scenario heading into next week.
Also driving market moves on Friday, Marvell Technology
"AI has emerged as a key growth driver for Marvell," Marvell CEO Matt Murphy said in the company's earnings release. "While we are still in the early stages of our AI ramp, we are forecasting our AI revenue in fiscal 2024 to at least double form the prior year and continue to grow rapidly in the coming years."
On the economic front, April's personal consumption expenditures (PCE) reading came in hotter-than-expected with a 0.4% rise, while core PCE rising 4.7% over last year -- accelerating from March's 4.6% annual increase.
Meanwhile, consumer sentiment rose to 59.2 in May's final reading from the University of Michigan. However, economic outlooks for many Americans were impacted by concerns over the U.S. debt-ceiling.
"Consumer sentiment slid 7% amid worries about the path of the economy, erasing nearly half of the gains achieved after the all-time historic low from last June," said Joanne Hsu, director of the Survey of Consumers, in a statement.
"This decline mirrors the 2011 debt ceiling crisis, during which sentiment also plunged. This month, sentiment fell severely for consumers in the West and those with middle incomes. The year-ahead economic outlook plummeted 17% from last month," Hsu added.
Looking ahead, market participants will continue to monitor ongoing talks in Washington as well as trade ahead of May's job report due out on Friday. The U.S. stock market will be closed on Monday for Memorial Day.
