by Noel Randewich and Shristi Achar A

(Reuters) – The New York Stock Exchange ended higher on Friday as talks of raising the U.S. debt ceiling grew.

The Dow Jones Industrial Average gained 1%, or 328.69 points, to 33,093.34 points.

The broader S&P-500 gained 54.17 points, 1.30%, to 4,205.45 points.

The Nasdaq Composite advanced for its part by 277.59 points (2.19%) to 12,975.69 points.

U.S. President Joe Biden and the Republican “speaker” in the House of Representatives appear close to reaching an agreement on the U.S. debt ceiling, a U.S. official told Reuters.

Investors are watching debt ceiling talks closely as Joe Biden and Kevin McCarthy still appear to be at odds on various issues and ahead of an extended weekend, with U.S. markets closed on Monday due to a holiday.

“Everything seems to indicate that an agreement will be reached and the recovery will continue, but if that is not the case after this weekend, then on Tuesday we will see quite significant losses,” said Scott Ladner, chief investment officer. at Horizon Investments.

On the macroeconomic front, the figures for US consumer income and spending showed a more marked increase in consumption than expected, but above all an acceleration in the PCE, global and “core” inflation indices, which reinforces in the eyes of investors the scenario of a Fed rate hike in June.

“We still have inflation, we still have higher interest rates and that will continue to be a drag on the market until the Federal Reserve decides to slow down,” said David Sadkin, chairman of Bel. Air Investment Advisors.

In values, the Philadelphia Stock Exchange’s semiconductor index rose for the second day in a row, driven by optimism about artificial intelligence.

Ford advanced after the automaker signed an agreement giving customers access to more than 12,000 Tesla Superchargers in North America by early 2024. Tesla jumped 6.7%.

Ulta Beauty fell after the company cut its annual operating margin forecast.

Paramount Global has rallied after its shareholder National Amusements received a $125 million investment.

(Report Shreyashi Sanyal, Shristi Achar A and Noel Randewich; Camille Raynaud)

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