Approval of the debt ceiling bill gave further reason for the rally in stock futures prices.
In an exciting development, US stock futures continue to rise as traders make sense of the much-anticipated May jobs report and celebrate US lawmakers’ passage of the debt ceiling bill.
according to report, Dow Jones Industrial Average futures (INDEXDJX: .DJI) rose 180 points, or 0.5%. Similarly, futures related to both the S&P 500 (INDEXSP:.INX) and the Nasdaq 100 also rose 0.5%. These bullish signs, boosted by encouraging news from various companies, set the tone for a potentially good trading day.
One notable premarket performer was popular sports apparel retailer Lululemon Athletica Inc (NASDAQ: LULU). The company’s share price rose a staggering 15.57% as investors responded favorably to the strong results.
Another standout is MongoDB Inc (NASDAQ: MDB), the leader in modern general-purpose database platforms. The company’s stock jumped 31% in the hours after the announcement of the expected crash.
Excitement over the May jobs report was evident. Investors are looking to the jobs report as an indicator of economic growth and stability. As the labor market is still recovering from the impact of the COVID-19 pandemic, positive indicators on job creation and unemployment are welcome.
In particular, the May jobs report will have a significant impact on the Fed’s future policy decisions. With the unemployment rate pegged at 3.7%, the report provides valuable insight into the state of the labor market and could shape the central bank’s stance on interest rates.
The announcement comes after economists surveyed by Dow Jones released forecasts that said they expected job growth to slow in May compared with the previous month. Consensus suggests employment will increase by 190,000, down from 253,000 in April. According to the data released, a total of 339,000 jobs were created. Added May exceeded expectations.
US Stock Futures and the Debt Ceiling Bill
Meanwhile, the approval of the debt ceiling bill gave further reason for the rally in stock futures prices.
Earlier this week, fears that a failure to reach a deal to raise the debt ceiling could lead to a U.S. debt default spooked some investors. However, with the resolution of this issue, those concerns have been resolved, and a sense of security is spreading in the market.
Mona Mahajan, senior investment strategist at Edward Jones, said the market had hoped for a solution to the debt ceiling crisis. Moreover, Mahajan revealed that removing this tail risk from the market equation has brought a collective sigh of relief. He also acknowledged that the debt ceiling debacle and the expected limited economic impact of the spending cap have contributed to positive sentiment among investors.
Meanwhile, the S&P 500 and Nasdaq Composite Index (INDEXNASDAQ: .IXIC) are poised to post gains of around 0.4% and 1%, respectively, as the trading week draws to a close.
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-world applications of blockchain technology and the innovations driving the general acceptance and global integration of emerging technologies. His desire to educate people about cryptocurrencies has inspired his contributions to well-known blockchain-based media and sites. Benjamin Godfrey loves sports and farming.
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