Stocks rose higher on Thursday after the U.S. House passed a debt ceiling bill, clearing another hurdle before it can be signed into law by President Joe Biden. The Dow Jones Industrial Average climbed over 150 points, while the S&P 500 Index and Nasdaq Composite added about 1% and 1.3%, respectively.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): +0.99% or +41.20 points to 4,221.03

Dow Jones Industrial Average (DIA  ): +0.47% or +154.09 points to 33,062.36

Nasdaq Composite Index (QQQ  ): +1.28% or +165.70 points to 13,100.98

The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support late Wednesday, moving the bill into the Senate. Senate Majority Leader Chuck Schumer said the Senate will stay in session until a bill is passed.

Also driving market moves on Thursday, U.S. private payrolls rose by 278,000 in May, the ADP reported Thursday, topping estimates but coming slightly below the point from the previous month. The report comes a day ahead of the Labor Department's "official" payroll report for May, which is expected to show an increase of 190,000.

Separately, initial jobless claims edged higher to 232,000 for the week ended May 27, the Labor Department reported Thursday, coming in slightly below estimates. Continuing unemployment claims also rose to 1.795 million, but were below economist estimates.

Investors are looking ahead to the Federal Reserve's policy meeting later this month, with Friday's jobs report being the latest major labor market reading before the central bank's decision on interest rates.

In single-stock news, JPMorgan Chase downgraded Target (TGT  ) on Thursday, citing concerns over the retailer's outlook due to declining market share and disinflation in the company's grocery segment.

"Today, we believe TGT sits at the center of a number of consumer headwinds," analyst Christopher Horvers said. "With 51% of its sales derived from discretionary categories (apparel, hardlines, and home), 49% derived from more consumable categories (which are facing disinflation), accelerating share of wallet reversion occurring, and student loans potentially coming due, we see the risk of downward earnings revisions rising."

Looking ahead, market participants are expected to applaud the passage of the debt ceiling bill in the Senate, which could happen as soon as Thursday evening. Friday's job market data is also expected to move markets ahead of the Fed's June policy meeting.