HomeFinancial MarketsStocks Rise as Debt Deal Passes, Jobs Data Imminent

Stocks Rise as Debt Deal Passes, Jobs Data Imminent

U.S. stocks climbed on Friday after the debt ceiling deal passed through both houses of Congress. Investors are also awaiting the latest monthly U.S. jobs report as an indication of the direction that the Federal Reserve may take its monetary policy going forward.

Futures on the S&P 500 rose 0.4% as did those on the Dow Jones Industrial Average. Contracts listed on the Nasdaq Composite Index gained 0.3%. European stocks were also on the rise, with the Stoxx Europe 600 edging higher by 0.7%, while the MSCI Asia Pacific Index rose 2%.

Traders are expecting the incoming jobs report to show a cooldown in hiring over the past month, thereby providing the Federal Reserve with leeway to pause its interest rate hikes. Fed Bank of Philadelphia President Patrick Harker and St. Louis President James Bullard have both expressed support for a pause, claiming that rates have been increased to a sufficient level to bring down inflation.

Erin Gibbs, senior partner and chief investment officer for Main Street Asset Management, warned that a pause has not yet been confirmed, meaning that any further hike could cause stocks to reverse course.

“We are really ripe for some type of pullback,” Gibbs stated. “There is a little cautiousness, a little uncertainty as we get a clearer idea of how the Fed will act.”

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