Week of 05/29-06/02 Stocks Rise, Strong Jobs Report and Debt Ceiling deal near close

All three market indexes surged on Friday as investors cheered a strong jobs report and the passing of the debt ceiling deal by the Senate. May's job report indicated that the labor market is still strong, a high unemployment report, and revealed a slight decrease in average hourly wages. This all provided a boost to investor confidence which helps alleviate recession concerns due to inflation. Investors are more likely to price in an interest rate pause from the Federal Reserve on their next meeting on June13-14. Fitch ratings on the other hand, is not going easy on the U.S. as the government debt could downgrade its credit rating even after the debt ceiling deal is passed. This would take away the AAA rating that the U.S. has which indicates the lowest tier of expectation of default risk.

Update (Saturday 06/03): President, Joe Biden, signed into law a bill to suspend the nation's debt limit until January 1, 2025. This is to avoid the U.S. to default on its debt and protecting Social Security, Medicare, and Medicaid. One thing to note about this bill's timeframe, it ends soon after the next presidential elections.