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The approval of the debt ceiling bill provided another reason for a positive rally in stock futures.
In an exciting development, the U.S. stock futures Traders took note of the highly anticipated May jobs report and celebrated the passage of a debt ceiling bill by United States lawmakers.
According to reportson futures Dow Jones Industrial Average (INDEXDJX: .DJI) rose 180 points, or 0.5%. Similarly, futures involving both S&P 500 (INDEXSP: .INX) and the Nasdaq 100 both climbed 0.5%. These bullish signs set the tone for a potentially good trading day, fueled by encouraging news from various companies.
One notable performer in the pre-market was Lululemon Athletica Inc (NASDAQ:LULU), a popular athletic apparel retailer. Shares of the company rose significantly by 15.57% as investors reacted positively to the strong financial results.
MongoDB Inc. (Nasdaq: MDB) was another leading modern, general-purpose database platform. The company’s shares rose an impressive 31% in the hours following the announcement of the eruption forecast.
Enthusiasm for the May jobs report was palpable. Investors are watching the employment data as an indicator of economic growth and stability. With the labor market still recovering from the consequences of the COVID-19 pandemic, any good indicators in job creation and unemployment data are welcome.
In particular, the May jobs report holds important implications for future policy decisions of the Federal Reserve. With the unemployment rate pegged at 3.7%, the report provided valuable insight into labor market conditions and is billed to potentially shape the Central Bank’s stance on interest rates.
Ahead of the release, economists polled by Dow Jones raised their estimates indicating an expected easing in job growth for May compared with the previous month. Consensus suggests 190,000 jobs were added, a decline from the 253,000 achieved in April. There were a total of 339,000 jobs from the data released couple Exceeded expectations, in the month of May.
US Stock Futures and Debt Ceiling Bill
Meanwhile, the approval of debt ceiling bill provided another reason for positive rally in stock futures.
Earlier in the week, there were fears that failure to reach an agreement on raising the debt ceiling could lead to a US default on its obligations, which unsettled some investors. However, with the resolution of the issue, those concerns have been put to rest, giving a sense of relief to the market.
Mona Mahajan, senior investment strategist at Edward Jones, said the market had anticipated a resolution to the debt ceiling crisis. Furthermore, Mahajan revealed that removing this tail risk from the market equation has brought a collective sigh of relief. In addition, he acknowledged that the failure of the debt ceiling and the limited economic impact expected from the spending limit have contributed to positive sentiment among investors.
Meanwhile, as the trading week nears its end, the S&P 500 and Nasdaq Composite (INDEXNASDAQ: .IXIC) are set to post gains of about 0.4% and 1%, respectively.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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