Investors were cautiously optimistic on Friday as talks to raise the debt ceiling continued. Reports that negotiations had hit a pause mid-morning weighed on the markets, with the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite all down 0.5%, 0.4%, and 0.4%, respectively.
President Joe Biden is expected to return home on Sunday and hold a press conference to update on the progress of the talks. The U.S. has until early June to reach a deal before it runs out of options to continue paying its obligations.
Meanwhile, Federal Reserve Chair Jerome Powell is participating on a panel with former Fed Chair Ben Bernanke at a conference in Washington. His appearance caps a week of appearances by Fed officials, whose comments reveal the policymakers are still deciding whether to pause rate hikes in June or continue to tighten as they fight inflation.
Shares of Deere & Company (NYSE:DE) rose 1% after it raised its annual profit forecast as surging farm incomes boost purchases. Apparel and shoe retailer Foot Locker, Inc. (NYSE:FL) tumbled 27% after it cut its annual sales and profit forecasts. Investment bank Morgan Stanley (NYSE:MS) shares wobbled after CEO James Gorman announced plans to step down in the next year. Shares fell 2.3%.
Overall, the S&P and the Nasdaq are on track for their strongest weekly performance since March as corporate earnings bolster investor risk appetite.