Stocks on the rise Thursday, early today after Senate’s new debt ceiling approval
Wall Street pointed higher this morning, according to the Associated Press. Futures for the S&P 500 and the Dow Jones Industrial Average rose 0.5% before the bell.
Late Thursday, the Senate gave final approval to an agreement to raise the amount the government can borrow in exchange for spending cuts. The widely expected step removed the threat of default that roiled markets last week before President Joe Biden and House Speaker Kevin McCarthy negotiated a compromise.
While the U.S. debt agreement was positive for the markets, investors are more concerned about whether the economy will fall into a recession before inflation recedes enough to convince the Federal Reserve to ease off rate hikes.
Wall Street’s benchmark S&P 500 index rallied 1% on Thursday after data showed manufacturing and retail activity weakening. That added to hopes the Fed might decide upward pressure on prices is easing and more rate hikes can be postponed or scaled down.
In the energy market, benchmark U.S. crude rose $1.20 to $71.29 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.01 on Thursday to $70.10. Brent crude, the price basis for international oil trading, advanced $1.18 to $75.46 per barrel in London. It gained $1.68 the previous session to $74.28.
On Thursday, the Dow gained 0.5% and the Nasdaq composite jumped 1.3%.