Traders on the floor of the NYSE, May 6, 2022.
Stock futures moved higher in overnight trading Thursday as Wall Street continued monitoring the situation surrounding the debt ceiling.
Shares of Ross Stores oscillated near the flat line in overnight trading after the off-price retailer beat on earnings but shared a cautious outlook. Applied Materials lost about 1.5% despite an earnings beat.
Stocks are coming off a positive session in which the S&P 500 and Nasdaq Composite jumped 0.94% and 1.51%, respectively, to hit their highest closing levels since August. The Dow Jones Industrial Average rose more than 115 points, or 0.34%.
Thursday’s moves boosted the major averages’ weekly gains, with the Nasdaq up 3.3% and the S&P 500 on pace to end 1.8% higher. Both are on track for their best weekly performance since March 31. The Dow is up 0.7%.
News connected to the debt ceiling captured investors’ attention as June 1, the earliest day the U.S. could defaultfast approaches. Comments from House Speaker Kevin McCarthy Thursday seemed to suggest a potential deal could come as soon as next week.
“There is some uncertainty about when the government will be unable to meet its obligations in terms of running out of money, so that does create some uncertainty,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. “And so, it’s still a risky environment, but one which we believe will ultimately see an outcome that is not too damaging to the markets – on a long-term basis, at least.”
Friday marks a light day for economic data, although comments from Federal Reserve Chair Jerome Powell and New York Fed President John Williams are on deck in the morning.