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08 Oct 2021
2.5 min read

Wall Street Stocks Rise After Senate Votes to Extend Debt Limit

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Key Takeaways

  • Wall Street stocks gain on Thursday with futures flat ahead of Friday’s opening bell
  • The US Senate votes to extend the debt limit until December, the bill now heads to the House

What’s on Focus in the Markets?

Wall Street stocks advanced broadly on Thursday after the US Senate agreed to extend the short-term debt limit until December. In other words, the US government will avoid a potential default at least for a couple more months.

As a result of the deal between lawmakers, the stock market in the US rallied across the board. The 30-stock Dow Jones Industrial Average gained 1% to close at 34,754.94. In addition, the other two major stock gauges also moved higher. The S&P500 added 0.8%, while the tech-heavy Nasdaq Composite jumped over 1% on the day.

In individual stocks, Tesla shares popped more than $10, or 1.4%, to $793.61 a share. Moreover, the EV maker announced it is moving its headquarters from California to Texas. The decision was announced by CEO Elon Musk at the annual shareholder meeting yesterday.

In forex markets, the US dollar continues to dominate over a weaker euro. The EURUSD floats near its multi-month low around 1.1550 to 1.1530. However, today’s economic news is likely to increase the pair’s volatility as participants will be looking to make fresh deals.

What’s the Latest News on Bitcoin?

Bitcoin has been keeping steady near $54,000 a coin over the past couple of days. Indeed, the leading crypto token is having a highly positive week as the price has gained about 13% since Monday.

An improving regulatory climate has brightened the outlook for crypto. In more detail, the leading regulatory bodies in the US this week signaled an accommodative stance toward digital assets. The Securities and Exchange Commission, led by Gary Gensler, said it does not intend to ban bitcoin or crypto. Additionally, the Treasury and the Federal Reserve mirrored Mr. Gensler’s approach to the fast-rising market.

Moreover, the latest fund to announce a bitcoin endorsement turned out to be the one founded by legendary trader George Soros. In other words, Soros Fund Management, a pioneer in the hedge fund industry, and now a family office, owns bitcoin.

That became clear in a Bloomberg interview with Dawn Fitzpatrick, CEO, and CIO at the investment firm. Ms. Fitzpatrick praised the development of the cryptocurrency market and said its value of over $2tn is impressive. Furthermore, with over 200 million users, the growth speed is commendable, she also noted.

What’s Next for Traders and Investors?

Market participants today will be expecting to hear the latest US jobs number. More precisely, the nonfarm payrolls and unemployment reports for the US economy are slated at 8:30 am EST. The data release will most likely elevate fluctuations in currencies, commodities, and stocks.

Today’s Economic Calendar (EST times)

  • 08:10, EUR, ECB President Lagarde Speaks
  • 08:30, US, Nonfarm Payrolls (Sep)
  • 08:30, US, Unemployment Rate (Sep)
  • 08:30, CAD, Employment Change (Sep)

 

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