JABAR EKSPRES – Stocks on Wall Street were higher in late trading Friday (6/2/2023), as investors welcomed a vote in Congress to suspend the US debt ceiling amid rising hopes that the Federal Reserve will stop raising interest rates.
The Dow Jones Industrial Average lifted 153.30 points, or 0.47 percent, to settle at 33,061.57 points. The S&P 500 Index added 41.19 points, or 0.99 percent, to end at 4,221.02 points. The Nasdaq Composite Index rallied 165.70 points, or 1.28 percent, to close at 13,100.98 points.
Nine of the 11 major sectors of the S&P 500 ended in the green, with the technology and industrial sectors leading the gains, up 1.33 percent and 1.26 percent, respectively. Meanwhile, the utilities and consumer staples sectors fell 0.78 percent and 0.09 percent, respectively.
US stocks rallied on Thursday (6/1/2023) after the House of Representatives passed a debt ceiling bill late Wednesday in a decisive move to keep the federal government on track to prevent a potential default, with the legislation now moving to the Senate.
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Bipartisan lawmakers in the House approved the bill titled the Fiscal Responsibility Act by a vote of 314-117.
“The Senate will remain in session until we send a bill that avoids default to President Biden’s desk,” said Senate Majority Leader Chuck Schumer.
“Any changes to this bill that force us to send it back to the House are unacceptable,” Schumer added.
Comments from several central bankers suggesting it may not be necessary to raise interest rates again at the Federal Reserve’s June 13-14 policy meeting have also boosted market sentiment.
Philadelphia Federal Reserve President Patrick Harker said on Thursday (6/1/2023) that he thinks the Fed has almost reached the point of being able to stop raising interest rates. This comment came one day after Harker said it might be appropriate to “skip” a rate hike in June.
