Stocks in New York open June higher after the House of Representatives of the United States gave half sanction to the bill on a new limit to the indebtedness of the federal Government, which would lower the cost of money and would lead to a lower adjustment in interest rates by the Federal Reserve (FED).
The Dow Jones Industrial Average rose 0.5%, while the broad S&P 500 index gained 1% and the Nasdaq technology gauge rose 1.3%.according to data provided by the New York Stock Exchange (NYSE).
Both the S&P 500 and the Nasdaq closed at their highest levels since August 2022.
The Fiscal Responsibility bill has passed the upper chamber, and now the Senate has rushed to agree on a plan for swift consideration of the debt limit agreement forged by President Joseph Biden and House Speaker Kevin McCarthy.before the June 5 deadline, to avoid a destabilizing default.
Again, big tech stocks were the main players in the stock rally as bond yields fell amid favorable bets that the Fed will halt its interest rate hikes in June.
Investors look to the Fed’s monetary policy meeting on June 13-14 as another possible signal to energize the market.
Philadelphia Fed President Patrick Harker said today that the agency is close to the point where it can stop interest rate hikes.
However, he conditioned that statement on the May unemployment report due out tomorrow.
Private payroll data grew more than economists expected in May, while the number of jobless claims filed last week was lower than economists had forecast.
In other corporate news, Salesforce fell after the software company posted a lackluster sales outlook. Dollar General fell as the discount retailer lowered its full-year earnings forecast. Nordstrom gained after quarterly revenue and profit for the department store chain slightly topped estimates.
The 10-year Treasury yield fell to 3.59% from 3.65% on Wednesday, while the 2-year Treasury yield fell to 4.32% from 4.40%.
The most important rises in the DJ were for American Express +2.6%, Visa +2.5% and Home Depot +1.7%. The highlights of the S&P 500 were for NetApp +8.5%, Constellation and Comerica +5.8% and Carnival +5.5%. The best of the Nasdaq was recorded in Match Group +10.2%, Baidu +6.5% and JD.com +6%.
Source: Ambito
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