- Markets rose on Wednesday, May 17, 2023 on optimism about U.S. debt ceiling talks and regional banks.
- Tesla shares gained as Elon Musk said the EV maker would begin advertising.
- Wheat and corn futures dropped as a deal allowing Ukraine grain shipments was extended.
U.S. equities jumped as President Biden and House Speaker McCarthy said the U.S. won’t default as the discussions on raising the country’s borrowing limit continue.
Adding to the positive mood was a report from Western Alliance Bancorporation (WAL) showing a big increase in deposits. The Dow, S&P 500, and Nasdaq all added more than 1%.
Shares of regional banks took off on the Western Alliance news, with Comerica (CMA) and Zions Bancorporation (ZION) leading the S&P 500 higher. Shares of Goldman Sachs (GS), JPMorgan Chase (JPM), and other large banks rose as well.
Tesla (TSLA) shares popped 4% as CEO Elon Musk told shareholders the electric vehicle maker will start advertising its products, and it would deliver the first Cybertruck this year. Shares of Wynn Resorts (WYNN) advanced following an analyst upgrade.
Target (TGT) shares climbed after the retailer exceeded earnings and revenue forecasts. Better-than-expected results from Keysight Technologies (KEYS) sent shares of the maker of electronic test and measuring devices higher. Shares of cruise lines, airlines, and other travel-related companies gained.
Intel (INTC) and Merck (MRK) were the only stocks in the Dow to fall as much as 1%. Everest Re Group (RE) shares dropped as the reinsurer announced it plans to raise $1.5 billion to fuel expansion. Shares of EVgo (EVGO) tumbled after the operator of electric vehicle charging stations said it would sell $125 million in stock to help pay for general corporate expenses.
Wheat and corn futures sank after extension of an agreement with Russia that allows grain to be shipped out of Ukraine. Oil futures advanced more than 2%. Gold prices declined. The yield on the 10-year Treasury note moved up. The U.S. dollar rose against the euro and yen, but lost ground to the pound. Most major cryptocurrencies rallied in the afternoon and traded higher.