Stocks Advanced On Wall Street as Debt Deal Moves to Congress

Barry Adams
30 May, 2023
New York City

Stocks advanced after a three-day weekend and tech stocks led the gainers on Wall Street.  

Market sentiment was positive after the White House and Republican lawmakers worked out a deal to avert government default, restrain government spending and expand permitting process for energy projects. 

The deal still faces  hurdles and lawmakers in the House are expected to vote on the agreement as early as Wednesday followed by a vote in the Senate. 

Last week, Treasury Secretary Janet Yellen reiterated that the federal government is likely to run out of cash to pay for expenses as early as June 5.  

The U.S. is expected to default on its debt obligation if lawmakers fail to approve the bipartisan deal and the government may have to prioritize its expenses including social security, federal employee salaries and military spending. 

 

U.S. Indexes & Yields 

The S&P 500 index increased 0.5% to 4,225.40 and the Nasdaq Composite rose 1.3% to 13,149.68. 

The yield on 2-year Treasury notes decreased to 4.53%, 10-year Treasury notes edged down to 3.73% and 30-year Treasury bonds held at 3.93%. 

Crude oil rose $1.72 to $71.28 a barrel and natural gas prices held at $2.35 a thermal unit. 

 

U.S. Stock Movers

Semiconductor chip makers led the gainers on the hopes of revenue growth led by the expected surge in demand for AI-chips. 

Nvidia Corp jumped 5.5% to $411.43, AMD gained 0.3% to $127.11 and Qualcomm Inc increased 4.4% to $115.11. 

Nvidia crossed $1 trillion mark capitalization after the stock extended this year's gain to 190%.   

Toyota Motor Corp decreased 1.3% to $138.55 after the Japan-based vehicle maker and Germany-based Daimler Truck Holding agreed to merge their Japanese operations. 

Daimler Truck Holding AG increased 1.1% to €28.83 in Frankfurt trading. 

Tesla Inc increased 5.1% to $202.50 after the electric vehicle maker's chief officer Elon Musk met with China's foreign minister and signaled his readiness to expand Shanghai operations.

China has been facing a steady exodus of manufacturing companies to Vietnam, India and Mexico as companies seek to diversify its manufacturing base.