Equity

The strength that emerged on Wall Street came after 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.

Investors are looking ahead to the Federal Reserve's June 13-14 policy meeting as another possible market catalyst, with market participants expects pause in rate hikes, as report on Thursday showed that fewer workers applied for jobless benefits last week than expected, while another suggested employers increased their payrolls last month by more than forecast. Also, a report from the Institute for Supply Management said manufacturing shrank for a seventh straight month in May. Industrial production is getting affected due to higher interest rates.

At the close of trade, the Dow Jones Industrial Average index advanced 153.30 points, or 0.47%, to 33,061.57. The S&P500 index added 41.19 points, or 1%, to 4,221.02. The tech-heavy Nasdaq Composite Index increased by 165.70 points, or 1.28%, to 13,100.98.

Total 9 of 11 sectors ended higher along with S&P500 index. Information technology was top performing sector, rising 1.33%, followed by materials (up 1.24%), industrials (up 1.26%), and energy (up 1.23%), and financials (up 1.09%). Utilities was bottom performing sector, falling 0.78%.

ECONOMIC NEWS: The payroll processor ADP released a report showing private sector employment in the U.S. jumped by278,000 jobs in May after surging by a revised 291,000 jobs in April.

Meanwhile, the Labor Department released a report showing initial jobless claims crept up to 232,000, an increase of 2,000 from the previous week's revised level of 230,000.

The Institute for Supply Management also released a report showing manufacturing PMI slipped to 46.9 in May from 47.1 in April, with a reading below 50 indicating a contraction.

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