Banks stocks rise after Congress staves off debt default
Bank shares rose on Friday after the Senate passed bipartisan legislation that lifted the government’s $31.4 trillion debt ceiling and averted a historic default.
Shares of JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Wells Fargo, and Bank of America gained between 2.2% and 3.8%.
Their mid-sized counterparts, Charles Schwab), PNC Financial, Regions Financial, US Bancorp, and PacWest Bancorp, gained between 2.9% and 12%.
Meanwhile, the jobs report highlighted a cooling in wage inflation that reinforced bets that the central bank will steer clear of a rate hike this month.
Fed funds futures trading showed an over 70% probability that the Fed will hold interest rates steady at its June 13-14 policy meeting.