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Stocks rose Friday as optimism around a potential U.S. debt ceiling deal increased.
The Dow Jones Industrials leaped 301.58 points midday Friday to 33,066.23.
The S&P 500 gained 48.42 points, or 1.2%, to 4,199.70.
The NASDAQ popped 251.15 points, or 2%, to 12,949.25.
The corporate earnings season is drawing to a close, but a handful of stocks were moving in response to their reports after the bell. Retailer Gap galloped more than 9% and semiconductor stock Marvell Technology rose more than 26%, while Ulta Beauty tumbled 12%.
Debt ceiling negotiations weighed on market sentiment this week. The S&P 500 entered Friday’s session down about 1% week to date, while the Dow lost nearly 2% in that time. The NASDAQ was higher by 0.3%.
House Speaker Kevin McCarthy left the Capitol Thursday night saying a deal had not been reached yet. However, sources told news outlets that the White House and McCarthy are close to reaching an agreement that would raise the U.S. debt ceiling for two years.
Treasury Secretary Janet Yellen has warned that the U.S. could default on its debt as soon as June 1 if the debt ceiling is not raised.
New data out Friday morning showed inflation rose more than expected in April. The personal consumption expenditures index, the Federal Reserve’s preferred gauge of price pressures, increased 0.4% last month and 4.7% from a year earlier.
Prices for the 10-year Treasury slumped a bit, raising yields to 3.84% from Thursday’s 3.82%. Treasury prices and yields move in opposite directions.
Oil prices recovered 65 cents to $72.48 U.S. a barrel.
Gold prices fought their way higher 20 cents to $1,943.90 U.S. an ounce.
