Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

S&P 500 Rides Debt Ceiling Deal Higher Ahead of Jobs Report

Stock MarketsOct 07, 2021 20:06
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Yasin Ebrahim – The S&P 500 racked up gains Thursday, as agreement on a stop-gap measure to raise the debt ceiling and temporarily avert a U.S. default paved the way for a sea of green on Wall Street.

The S&P 500 rose 0.97%, the Dow Jones Industrial Average gained 1.1% or 366.90 points, the Nasdaq was up 1.2%.

U.S. Senate Majority Leader Chuck Schumer said lawmakers reached an agreement to raise the Treasury Department's debt ceiling by $480 billion to allow the government to meet its liabilities until December.

"The deal takes the near term risk off the table … and allows Democrats to turn their focus to finding a compromise on the multi-trillion reconciliation package," said Aptus Capital Advisors portfolio manager David Wagner said in an interview with on Thursday​

Cyclical stocks, which tend to move in tandem with the economy, led the broader move higher.

Consumer discretionary was the top performing sector, underpinned by 6% sharp in Penn National Gaming (NASDAQ:PENN) after the casino and sports betting company received approval to acquire sports media company theScore.

A rally in autos including General Motors (NYSE:GM) and Ford rounded off the list of the top-performing consumer discretionary stocks amid ongoing optimism about both automaker's electric vehicle plans.

Energy stocks climbed as oil prices cut losses after shrugging off fears about a potential increase in supply after the U.S. said it would consider tapping emergency oil reserves to ease the pressure on gas prices.

Megacap tech, which sparked the broader market rebound a day earlier, continued to trend higher.

Apart from Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) were in the green.

Twitter (NYSE:TWTR), meanwhile, jumped 4% after it detailing plans to sell its MoPub mobile advertising network to mobile game developer AppLovin for $1.05 billion.

On the earnings front, Levi Strauss & Co  (NYSE:LEVI) was the standout performer, rising 9% after its quarterly results that topped Wall Street expectations on both the top and bottom lines.

With a just a day to go until the nonfarm payrolls for September, better-than-expected weekly jobless claims data stoked investor optimism on the recovery in the labor market.

The labor department reported that 326,000 people filed for unemployment insurance, down 38,000 from the prior week's upwardly revised 364,000, and lower the forecasts for 348,000 filers.

The fall in claims pointing to a recovery in the labor market supported by expectations for improved monthly jobs data due Friday that could provide the Federal Reserve with the green light to begin tapering its bond purchases next month.

Economist expect that the U.S. economy created 500,000 jobs last month, which would be a sharp improvement from the 235,000 seen in August.

"The Fed is going to taper starting this year, the pace will likely be $15 billion a month, but that hasn't been made official policy yet," Wagner added. "The biggest risk to markets heading into Friday's jobs report is that it causes the Fed to get more aggressive on their tapering of QE so that it ends earlier in 2022."

S&P 500 Rides Debt Ceiling Deal Higher Ahead of Jobs Report

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email