Wall Street reverses higher on optimism over debt ceiling deal

US stock indices rose on Thursday after a slip earlier in the session amid renewed optimism on the debt ceiling deal.

Even as the House of Representatives agreed on the bill raising the debt ceiling for the government, the bill is now in the hands of the Senate. 

Such a bill will raise the debt ceiling until January 1st, 2025, and will put aside such dangerous political risks for until after the 2024 presidential elections.

Interest Rates

Federal Reserve official, Michelle Bowman, said that a stronger housing sector could impact Fed efforts to combat inflation. 

Earlier US data showed the private sector added 278 thousand jobs last month, while analysts expected an addition of 173 thousand,.

Unemployment claims rose to 232 thousand last week, still below estimates of 236 thousand. 

On trading, Dow Jones rose 0.5%, or 170 points as of 16:42 GMT to 33,080, while S&P 500 rose 0.8%, or 33 points to 4,212, as NASDAQ added 0.9%, or 120 points to 13,055.