PARIS (Reuters) – The New York Stock Exchange is moderately higher on Friday in early trade, on hopes of a bipartisan agreement on raising the U.S. debt ceiling ahead of a long weekend as Monday will be a state holiday -United.

Minutes after the start of trading, the Dow Jones index gained 149.53 points, or 0.46%, to 32,914.18 points and the broader Standard & Poor’s 500 fell 0.42% to 4,168.69 points.

The Nasdaq Composite lost 0.55%, or 70.258 points, to 12,768.352.

US President Joe Biden and House of Representatives speaker Kevin McCarthy are close to reaching an agreement on the US debt ceiling, a person familiar with the negotiations said on Thursday.

Additionally, Deputy Treasury Secretary Wally Adeyemo said talks among negotiators are progressing.

On the macroeconomic front, the US consumer income and spending figures published one hour before the opening show a more marked increase than expected in consumption but above all an acceleration in the PCE, global and “core” inflation indices.

This statistic reinforces in the eyes of investors the scenario of a rate hike by the Fed in June.

US interest rate futures price in an estimated 60% probability of a quarter-point hike in the federal funds rate target.

“The PCE index showed that inflation remains tenacious. We feel the debt drama is about to end, but we still have to worry about what happens next for the Fed,” he said. said Art Hogan, at B Riley Wealth.

On the stock market, Gap gained 12.94% after reporting an unexpected profit in the first quarter.

Semiconductor maker Marvell Technology jumped 21.84% after forecasting a doubling of its annual revenue in the field of artificial intelligence.

(Laetitia Volga, edited by Blandine Hénault)

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