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Tech stocks pushed solid gains for Wall Street on Friday after another chipmaker reported strong demand related to artificial intelligence.
The gold market suffered another week of losses, falling for the third week as markets shifted expectations from a rate pause to a rate hike at the Fed’s policy meeting in June. The sentiment on Wall Street is now split on whether gold is done falling.
Key Developments
The positive finish to the trading week comes amid lingering anxiety over persistently high inflation, the risk of US debt default, and broadly weak corporate earnings. Marvell Technology surged a record-setting 32.4% after the chipmaker said it expects AI revenue in fiscal 2024 to at least double from the prior year.
The Consumer Finance Protection Bureau said it’s working to ensure that companies follow the law when they’re using AI. Officials said President Joe 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.
Economic Data
The Personal Consumption Expenditures (PCE) Price Index in the United States increased to 4.4% on an annual basis in April, up from 4.2% in March. Core PCE inflation and PCE inflation both climbed 0.4% month on month. Personal income increased 0.4% on a monthly basis, while personal spending increased 0.8%. The economy grew at a sluggish 1.3% annual rate from January through latest government report on inflation is raising concerns about the Fed’s next move. Bond yields had been slipping just prior to the report, but rose following the report.
What to watch next:
Markets are heading into a long weekend and will be closed in the US for the Memorial Day holiday on Monday. Investors have another busy week of economic updates ahead, including more data on consumer confidence and employment.
Also Read:
US equities sharply higher on debt ceiling deal optimism
US Sec. Yellen extends deadline for default to June 5
IMF suggests US interest rates needs to be higher for longer
Following three week losses, Wall Street divided on gold price direction
US debt ceiling talks get closer to a deal
