U.S. stocks advanced on Thursday morning after the House of Representatives passed a bill proposing to raise the government’s debt ceiling on Wednesday evening. This development has helped to subdue widespread market anxiety, particularly due to the approaching June 1 deadline, when an unprecedented default would occur if an agreement was not reached.
Futures on the S&P 500 edged 0.24% higher, while those on the Nasdaq Composite Index gained 0.16%. Contracts listed on the Dow Jones Industrial Average remained little changed.
With the bill being passed in a 314-117 vote in the House of Representatives, it is not set to be presented to the Senate, where it will be put to a second and final vote.
Although the House vote has been largely viewed as positive, Business Roundtable CEO Joshua Bolten cautioned that the process is not yet complete. “The deadline to raise the debt ceiling is rapidly approaching, and the likelihood of triggering a negative market reaction with severe economic consequences will only increase as we approach the precipice,” Bolten observed.
With such consequences in mind, Bolten called upon the Senate to pass the bill as soon as possible so as to advance the legislative process.