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Stocks advanced on 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 Dow Jones Industrials grabbed 154.09 points to conclude Thursday at 33,062.36, despite a nearly 4.7% tumble in Salesforce following its earnings report, which put a clamp on gains.
The much-broader S&P 500 took on 41.19 points, or 1%, to 4,221.02, while the tech-heavy NASDAQ index leaped 165.7 points, or 1.3%, to 13,100.98. Both the S&P 500 and NASDAQ closed at their highest levels since August 2022.
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.
But Friday’s payrolls report could change his mind, he said.
Data from ADP showing private payrolls grew more than economists expected in May, coming in at 278,000 against a 180,000 consensus estimate from Dow Jones. Meanwhile, the number of jobless claims filed last week was smaller than economists forecasted. Both data points show continued resiliency in the labor market, a closely watched area of the economy given concerns that sustained strength could prompt the Fed, once again to raise interest rates at its policy meeting later this month.
The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support. Senate Majority Leader Chuck Schumer 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.
Prices for the 10-year Treasury gained ground, lowering yields to 3.60% from Wednesday’s 3.64%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.94 to $70.03 U.S. a barrel.
Gold prices popped $13.50 to $1,995.60 U.S. an ounce.
