Traders on the floor of the NYSE, Aug. 4, 2022.
Stock futures rose slightly Thursday after the U.S. House passed a debt ceiling bill in a crucial step to avoid a U.S. default, with the measure now moving it to the Senate.
The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support. Senate Majority Leader Chuck Schumer, D-N.Y., said he hopes “we can move the bill quickly here in the Senate and bring it to the president’s desk as soon as possible.”
Concern over a possible U.S. debt default lingered on Wall Street throughout May — which concluded Wednesday. Last month was also marked by a dramatic rally in artificial intelligence-related stocks.
The Nasdaq Composite ended May with a 5.8% gain as enthusiasm around AI continued to boost related stocks. Chipmaker Nvidia jumped 36% in May, briefly touching a $1 trillion market cap this week. Alphabet, Meta and Amazon all rose at least 10% during the month.
“We have been impressed by the resilience of this market since the March low, absorbing a relentless onslaught of negative sentiment and headlines,” said Craig Johnson, chief market technician at Piper Sandler.
Beyond the debt ceiling battle, investors are looking ahead to the Federal Reserve’s June 13-14 policy meeting as another possible market catalyst. Philadelphia Fed President Patrick Harker said Wednesday that he’s leaning toward skipping a rate hike at the upcoming gathering. However, he added that Friday’s payrolls report could change his mind.
A slew of economic data is set for release Thursday, including weekly jobless claims and the purchasing managers’ index.
Nordstrom jumped 7% in premarket trading after its fiscal first-quarter sales beat Wall Street’s expectations. Salesforce shares fell about 6% after the software company bumped up its full-year forecast but reported higher capital expenses than expected.