The Dow Jones Industrial Average moved past a higher inflation print and ended the trading day up 1%. Tech leaders gained on Friday as healthcare stocks fell. Federal debt ceiling negotiations appeared to be taking a positive turn ahead of Memorial Day.
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The proposed deal would raise the debt ceiling by $31.4 trillion for two years while putting in place several spending caps. According to reports, a firm deal between House Speaker Kevin McCarthy and the White House is just $70 billion.
The S&P 500 added a strong 1.3% gain at the close, while the Nasdaq took a clear lead with a 2.2% gain as it hit a high last seen in August. Marvell Technology (MRVL) fueled the continued rally in chips. Software values also rose on Working dayresults of (WDAY).
Cummins (CMI) spin-off Atmos Filtration (ATMU) jumped 11% in its NYSE debut. The company manufactures filtration parts for automobiles and trucks. The company priced an offer of 14.1 million shares at 19.50, in the middle of a proposed range of 18-21.
Volume fell on the NYSE and Nasdaq from the same time Thursday, according to early data.
The small-cap Russell 2000 gained 1.1% as of 4 p.m. ET, while the growth-oriented ETF Innovator IBD 50 (FFTY) gained 1%.
Crude oil rose less than 1% to trade at $72.47 a barrel. The yield on the benchmark 10-year Treasury note remained stable at 3.81%.
Outside of Dow Jones: Stocks move today
Marvell surged after reporting earnings. Shares edged above a cup base buy point at 49.59 on Thursday and hit a 13-month high on Friday, as seen on IBD MarketSmith charts.
Chip stocks and AI games continued to recover, fueled by a strong quarter and forecasts of Nvidia (NVDA). Rival Advanced micro-systems (AMD) hit a profit target of 20%, while Intel (INTC) picked up Thursday’s loss.
Play IBD leaderboard ASML (ASML) added to recent gains and fell from a buy point of 683.28. Nvidia, also on IBD Leaderboard, had a bullish inside day. Taiwan semiconductor (TSM) rose after Thursday’s breakout and was extended from its buy point of 95.92 in a double bottom basis.
Among the software leaders, Workday came off a low base at 206.78 after fiscal first-quarter sales topped views. The outlook for the current quarter ending in July met Wall Street expectations. Enterprise software stock ranks 21st in the industry group, out of 197 industry IBD tracks. The relative strength line, which is at a 52-week high, is also showing support for the price action.
On IBD SwingTrader, Oracle (ORCL) fell slightly but continued to trade above the 50-day moving average. Stocks are extended from a handful entry at 91.32.
Wholesale Costco (COST) rose even as fiscal third-quarter revenue showed slowing sales while revenue missed views. The stock broke off the 50 and 200 day moving averages. Network giant and component of the Dow Jones Cisco Systems (CSCO) also erased the 50-day line as it is operating on a flat basis with an entry at 52.66.
Shares of Ford (F) grew by nearly 7% in volume after You’re here (TSLA) CEO Elon Musk said 12,000 Tesla Superchargers would be available to Ford from 2024. Ford’s stock broke the 50-day line, while Tesla tried to top its 200-day rolling average days, which is currently slightly over 200.
Elsewhere, rival EV Nicholas (NKLA) fell more than 4% as it faces possible delisting from the Nasdaq. NKLA ended at an all-time low of 59 cents per share.
PDD (PDD) jumped more than 18% in volume after earnings. The stock rallied back to the 50-day line but remained in a deep correction.
The Consumer Price Index and Personal Expenditures, the Fed’s preferred gauge of inflation, rose 0.4% in April. The probability of a 25 basis point hike in June has risen to 66.5%, according to CME FedWatch.
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