AI-Fueled Tech Gains Boost the Market Again

Dow jumps more than 300 points
By Newser Editors and Wire Services
Posted May 26, 2023 3:15 PM CDT
AI-Fueled Tech Gains Boost the Market Again
Traders work on the floor at the New York Stock Exchange in New York, Thursday, May 25, 2023.   (AP Photo/Seth Wenig)

Stocks climbed Friday, boosted by more tech gains related to artificial intelligence and rising hopes that a deal is close in the debt-ceiling talks.

  • The Dow rose 324 points, or 0.9, to 33,093.
  • The S&P 500 rose 54 points, or 1.3%, to 4,205.
  • The tech-focused Nasdaq rose 277 points, or 2.1%, to 12,975.
  • The week: The Nasdaq rose about 2.5% for the week (its fifth straight winning week), and the S&P 500 rose by less than 1%, per CNBC. The Dow lost about 1%.

Technology stocks did much of the heavy lifting for the benchmark S&P. Marvell Technology surged 29% after the chipmaker said it expects AI revenue in fiscal 2024 to at least double from the prior year, per the AP. That follows Thursday’s report from fellow chipmaker Nvidia, which gave a big forecast for upcoming sales related to AI. Meanwhile, officials said President Biden and House Speaker Kevin McCarthy were narrowing in on a two-year budget deal that could open the door to lifting the nation’s debt ceiling. They hope to strike a budget compromise this weekend.

Wall Street and the broader economy already had a full roster of concerns before the threat of the US defaulting on its debt became sharply highlighted on the list. “Should we avoid that, and it appears that is a high probability, we come back to a trajectory of a slowing economy, still-too-high inflation and restrictive monetary policy,” said Bill Northey, senior investment director at US Bank Wealth Management.

(More stock market stories.)

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