BackWall Street week ahead: After US debt deal, investors’ focus on jobs data
The debt deal is expected to give much relief to stock markets, which have been on edge over the likelihood of a default for past few weeks
PremiumAfter the deal on US debt limit, focus of investors on Wall Street next week will shift to other major economic data, including jobs report for May.
The jobs data for May will be released on June 2.
Earnings of HP, Salesforce and NetApp are also due next week.
The debt deal is expected to give much relief to stock markets, which have been on edge over the likelihood of a default for past few weeks.
US President Joe Biden and House Speaker Kevin McCarthy on Saturday reached a compromise to suspend the debt limit through January 2025 and keep non-defense spending roughly flat next year, with a 1% hike in 2025.
After this, the task of Biden government will be to get the legislation passed before a June 5 default deadline.
After the US debt deal, investors’ focus will also shift to Federal Reserve’s next monetary policy meeting in June.
On Friday, US stock indices, boosted by technology shares, rallied more than 1%.
The S&P 500 rose, 54.17 points, or 1.3% to close at 4,205.45. The Dow Jones Industrial Average gained 328.69 points, or 1%, to 33,093.34. The Nasdaq notched the biggest gains, rising 277.59 points, or 2.2%, to 12,975.69.
The US dollar on Friday rose to 140.63 Japanese yen from 139.99. The euro rose to $1.0730 from $1.0722.
The yield on the 10-year treasury on Friday rose to 3.80% from 3.78%. The 2-year treasury yield jumped to 4.56%.
On Friday, Brent crude for July delivery rose 69 cents to $76.95 a barrel. US crude oil benchmark for July delivery rose 84 cents to $72.67 a barrel.
Natural gas for June delivery fell 13 cents to $2.18 per 1,000 cubic feet.
Gold for June delivery on Friday rose 60 cents to $1,944.30 an ounce. Silver for July delivery rose 45 cents to $23.36 an ounce.
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