The approval of the debt ceiling law provided another reason for the positive rally in equity futures.
In an exciting development, US stock futures continued higher as traders made sense of the upcoming May jobs report and celebrated the passage of the debt ceiling bill by US lawmakers.
according to reportsFutures on the Dow Jones Industrial Average (INDEXDJX: .DJI) rose 180 points, or 0.5%. Likewise, futures contracts linked to both the S&P 500 (INDEXSP: .INX) and the Nasdaq 100 rose 0.5%. These bullish signals set the tone for a potentially good trading day, fueled by encouraging news from a variety of companies.
A prominent pre-market performer was Lululemon Athletica Inc (NASDAQ: LULU), a popular sports apparel retailer. The company’s shares witnessed a remarkable increase of 15.57% as investors reacted positively to the strong financial results.
Another highlight is MongoDB Inc (NASDAQ:MDB), a leading modern general-purpose database platform. Shares of the company rose an impressive 31 percent, hours after the explosion forecast was announced.
The enthusiasm for the May jobs report was evident. Investors have been watching the employment data with interest as an indicator of economic growth and stability. As the labor market continues to recover from the consequences of the COVID-19 pandemic, we welcome any good indicators in job creation and unemployment data.
Notably, the May jobs report holds crucial implications for the Fed’s future policy decision. With the unemployment rate fixed at 3.7%, the report provided valuable insights into the state of the labor market and was designed to likely shape the central bank’s stance on interest rates.
Before the release, economists surveyed by Dow Jones made their forecasts, indicating an expected softening in job growth for the month of May compared to the previous month. The consensus indicates that 190,000 jobs were added, down from 253,000 jobs in April. From the data released, a total of 339,000 jobs were added In May exceeded expectations.
US stock futures and the debt ceiling bill
Meanwhile, the approval of the debt ceiling bill provided another reason for a positive rally in equity futures.
Earlier in the week, there were concerns that a failure to reach an agreement on raising the debt ceiling could lead to the US defaulting on its obligations, which unsettled some investors. However, with the resolution of this issue, these concerns were alleviated, resulting in a sense of relief in the market.
Mona Mahajan, chief investment strategist at Edward Jones, noted that the market is expecting a settlement of the debt ceiling crisis. Moreover, Mahajan revealed that removing these tail risks from the market equation led to a collective sigh of relief. Furthermore, it acknowledged that the expected limited economic impact from the failure of the debt ceiling and spending ceiling had contributed to the positive sentiment among investors.
Meanwhile, as the trading week draws to a close, the S&P 500 and Nasdaq Composite (INDEXNASDAQ: .IXIC) are poised to post gains of about 0.4% and 1%, respectively.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.
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