Equity markets advanced on Thursday after a resolution to the debt ceiling deal emerged. The S&P 500 gained almost 1.0% by the end of the day and is on track to set a new high in the coming week. The caveat for traders and investors is that the index is still below the critical 4,300 mark and may not be able to advance beyond it.

The NFP report will dominate Friday's action. The NFP is expected to moderate job growth, an uptick in unemployment and ongoing wage inflation. The news, as expected, suggests a slowing in the economy but does not give the FOMC much leeway regarding interest rates. With inflation still running hot, the FOMC will have to keep rates higher, which will continue to pressure S&P 500 earnings.