stock markets may have woken from a slumber thanks to debtceiling hopes which sparked a wednesday rally for wall street nudging the sp 500 spx out of a grinding trading range while investors wait for more dc developments we’ve got results ahead from retail behemoth walmart while an appearance by fed chairman jerome powell looms for friday as for wednesday’s action some are highlighting the bullish bets that are counting on the white house and lawmakers getting a deal done read more on 0dte zero days to options expiration trading here but investors may need to be lightfooted if they want to catch any ride higher on debtceiling hopes says our call of the day from cameron dawson chief investment officer at newedge wealth a boutique wealth manager she urges investors to play the debtceiling optimism carefully “i think that the debt ceiling is the biggest buytherumorsellthenews event because the leadup to the debt ceiling has actually been a major driver of liquidity being pumped into this market” she told cnbc in an interview late wednesday “when the treasury has been spending down its cash balance instead of issuing new bonds the end result is that it increases reserves in the system and adds liquidity and that’s one of the reasons why growth stocks technology stocks speculative stocks have been up year to date” said the former bank of america equity analyst “but when we get past the debt ceiling the treasury will start issuing new bonds and that will have the net effect of taking liquidity out of this market” removing a tailwind for equities said dawson debt ceiling debate how us government debt and stocks will perform if a resolution is reached says datatrek her firm has been cautious on stocks and she’s not shifting there though that means sticking to quality names rather than hiding out in cash she says “we’ve been staying invested but it’s saying we don’t think that names that have high leverage or weak cash generation are where we want to be in this environment” “so in a tight liquidity environment in an uncertain environment you want to stay in those quality names in portfolios in order to ride out the cycle” said dawson our last word goes to one bullish voice out there who predicted a move higher for stock at the start of the week in his weekly newsletter that published on monday kobessi letter’s editorinchief adam kobeissi laid out a bullish technical setup for the sp 500 that may put sellinmay theories into question “fundamentally speaking equity markets have been incredibly resilient despite a plethora of headwinds and we believe this will remain the case into june” he wrote kobeissi called 4150 as nearterm resistance on the upside the sp 500 closed at 415877 on wednesday but said 4200 was the “real longterm pivot point that bulls need to break” “the last time the sp 500 traded above 4200 was in august 2022 and the 4200 level has been rejected multiple times since then it is possible that the nearterm consolidation we have seen is building technical energy for a breakout” he said adding that they remain bullish that 4200 will be reached us stock futures es00 ym00 nq00 are modestly higher with oil prices cl1 lower and gold futures gc00 also weak at 198010 an ounce the yield on the 10year treasury tmubmusd10y was 358 asia stocks nik followed up wall street’s wednesday rally with strong gains of their own read japan’s stock market is on a tear is it too late to jump in for more market updates plus actionable trade ideas for stocks options and crypto subscribe to marketdiem by investor’s business daily walmart wmt amd alibaba baba will report results ahead of the open ross stores rost and applied materials amat are due later from afterhours earnings news cisco stock csco is down 3 on worries about declining orders cfo scott herren told marketwatch that clients are just being “prudent” taketwo stock ttwo is up 10 after an outlook hinted the next “grand theft auto” video game is a year or so out retailer boot barn boot shares are down 15 on weak sales netflix nflx says its adsupported tier has nearly 5 million monthly active users globally weekly jobless claims and the philly fed factory survey are due at 830 am followed by existing home sales and leading economic indicators at 10 am fed gov philip jefferson will speak at 915 am and fed vice chair for supervision michael barr is due on capitol hill at 930 am montana has become the first state to ban tiktok which calls the new law unconstitutional florida gov ron desantis reportedly plans to officially launch his presidential bid next week the best of the web retailers say theft cost nearly 100 billion last year but are stores using crime stats to cover up other problems these 20 ai stocks are expected to post the highest compound annual sales growth through 2025 famed watergate reporters warn on the limitations of ai credit suisse strategists point out that investor bets on sp 500 decline via emini sp 500 futures es00 are at extremes not seen since 2011 should the index push through big resistance levels they say these bets could unwind and cause a massive shortcovering rally these were the topsearched tickers on marketwatch as of 6 am eastern this onceendangered marsupial in australia is back peanut butter helped need to know starts early and is updated until the opening bell but sign up here to get it delivered once to your email box the emailed version will be sent out at about 730 am eastern listen to the best new ideas in money podcast with marketwatch reporter charles passy and economist stephanie kelton