Debt ceiling success, strong jobs data raise investor expectations

Benzinga
·2 min read

On Thursday, the S&P 500 reached its highest levels since August and the index was continuing to climb Friday.

The market gauge and other indices ended the week on a high note as a result of strong macroeconomic data and constructive news from Capitol Hill.

Investors responded positively to an agreement between President Joe Biden and House Speaker Kevin McCarthy on a deal to temporarily suspend the U.S. borrowing limit until 2025. The debt ceiling deal passed both the House and the Senate just in time to avoid a government default.

The political success was complemented by stronger-than-expected jobs data. U.S. employers added 339,000 nonfarm payrolls in May, surpassing expectations of 190,000, with unemployment still at a historically low rate of 3.7%.

Nvidia rides AI wave

Chipmaker Nvidia crossed the $1-trillion market cap threshold on Tuesday, riding a wave that started the previous week, when the company’s first-quarter earnings report positioned it as a leading provider of artificial intelligence infrastructure technology.

Shares of electric vehicle maker Lucid Group dropped by double digits on the week after the company announced raising $3 billion in capital, including through a stock offering and a $1.8-billion private placement from Saudi Arabia’s Public Investment Fund.

In this Jan. 3, 2020 file photo, the Wall St. street sign is framed by American flags flying outside the New York Stock Exchange in New York.
In this Jan. 3, 2020 file photo, the Wall St. street sign is framed by American flags flying outside the New York Stock Exchange in New York.

Athleisure apparel company Lululemon became one of the biggest movers of the week, rising over 15% after hours Thursday, after the retailer posted first-quarter earnings that exceeded analyst expectations. A growth in sales of 24% year-over-year was led by the Chinese market.

Earnings reports to watch for: Nio, Docusign

Next week, investors should watch out for earnings of British plumbing and heating products distributor Ferguson on Monday, supermarket giant Kroger on Tuesday, digital signature platform Docusign on Thursday and Chinese EV maker Nio on Friday.

Benzinga is a financial news and data company headquartered in Detroit.

This article originally appeared on Detroit Free Press: Debt ceiling success, strong jobs data raise investor expectations