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Wall Street rises on hopes of Fed pausing hikes, debt ceiling deal cheer
The Nasdaq and S&P 500 have surged to nine-month highs following signs of slowing wage pressure in the US, which raised hopes of an interest rate pause, as well as Congress suspending the US debt ceiling. The Federal Reserve still faces a tight labour market, however, which could mean rates remain elevated. Many reports are pointing to signs of the Fed being able to engineer a soft economic landing. The Labor Department’s closely watched unemployment report for May is due on Friday, and the data therein will ultimately determine whether there will indeed be aggressive rate hikes by the Fed.