Wall Street Close: US debt ceiling concerns, upbeat data favor stock buyers ahead of NFP

• US equities stay firmer amid market optimism concern debt limit extension.
• One-month low US Jobless Claims, easing gas prices add strength to bullish bias.
• NFP, China’s return after a week become important catalysts to watch, not to forget US Congress updates.

US shares mark another positive day by the end of Thursday’s North American session.

The risk-on mood takes clues from optimism surrounding US debt limit extension and an easing in gas prices, not to forget upbeat data at home. However, cautious sentiment ahead of the key data/events, including the US Nonfarm Payrolls (NFP), China’s return to trading and US Congress vote on the debt filibuster, probe the bulls.

A monthly low of the US Weekly Jobless Claims and reflation fears, as cited by the Cleveland Federal Reserve Bank President Loretta Mester, back the Fed tapering concerns ahead of the key US jobs report for September and adds to the trading filters.

Against this backdrop, Dow Jones Industrial Average (DJI) gains 0.98% on a day, or 338 points to 34,754, whereas S&P 500 Futures add 0.83% intraday at the end of Thursday’s trading. Above all, the tech-heavy Nasdaq’s 1.05% gains, or 152 points to 14,654 gains the market’s attention.

It’s worth noting that the US 10-year Treasury yields were up 5.2 basis points (bps) to 1.576% at the latest.

Although Republicans jostled in a closed-door meeting to not let the Democrats easily pass the bill relating to a $408 billion debt limit extension until December, the latest updates from Bloomberg’s Erik Wasson keep markets hopeful. The Bloomberg reported quotes GOP Whip John Thune as saying, “debt limit bill will pass tonight. GOP will provide at least 10 votes to end filibuster.”

Elsewhere, Russian support to ease the gas prices may be due to their interest in the low energy bill, tamed energy bulls and favored the market sentiment. Furthermore, headlines suggesting recently improving relations between Washington and Beijing also added to the risk-on mood.

Talking about stock-specific moves, Helen of Troy and Aspen Technology had notable upside moves while Pinnacle West Capital became the worst performer of the S&P 500.

Looking forward, US Congress updates, China’s reaction to the latest fundamentals may entertain traders but not above the US jobs report for September that paves the way for the Fed’s tapering.

Read: US Nonfarm Payrolls September Preview: How far will markets go when the Fed tapers?