US equities hit highest since August on debt ceiling bill hopes

US stocks advanced on Thursday after the US House passed a debt ceiling bill in a crucial step to avoid a default. The Dow Jones Industrial Average traded up 153.3 points, or 0.47%, to end at 33,061.57. The S&P 500 gained 0.99% to finish at 4,221.02, while the Nasdaq Composite added 1.28% to end at 13,100.98. The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support on Wednesday night. Investors are looking ahead to the Federal Reserve’s June 13-14 policy meeting as another potential market catalyst.

Data from ADP showed private payrolls grew more than economists expected in May, while the number of jobless claims filed last week was smaller than economists forecasted. The market focus is shifting from whether the government is going to default on its debts to the more pressing issue of how much further interest rates are going to rise.

The Nasdaq is up nearly 1% week to date, putting the technology-heavy index on pace for six straight weekly wins. The S&P 500 is on track to end around 0.4% higher A lot of the market focus is shifting from whether the government is going to default on its debts, which was never going to happen, to the more pressing issue of how much further interest rates are going to rise. The Nasdaq is up nearly 1% week to date, putting the technology-heavy index on pace for six straight weekly wins — a streak length not seen since January 2020. The S&P 500 is on track to end around 0.4% higher, while the Dow is poised to lose 0.1% on the week.