Day Traders Diary

6/1/23

The major averages jumped to the upside to start the month of June after the U.S. House passed a debt ceiling bill in a crucial step to avoid a U.S. default. The Dow Jones Industrial Average rose 153 points or 0.47% while the S&P 500 rose 41 points or 1% while the Nasdaq rose 165 points or 1.28%.

The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support on Wednesday night. Senate Majority Leader Chuck Schumer, D-N.Y., said the Senate will stay in session until a bill is sent to President Biden's desk.

Beyond the debt ceiling battle, investors are looking ahead to the Federal Reserve's June 13-14 policy meeting as another possible market catalyst. Data from ADP showed private payrolls grew more than economists expected in May, while the number of jobless claims filed last week was smaller than economists forecasted.

UBS put out comments that investors should reposition their portfolio into assets that can provide quality income, the firm's chief investment officer of global wealth management, Mark Haefele, said in a note Thursday.