Boehner’s announcement was seen as a sign that he would advance a bill to fund the government without any complicating factors that would result in a White House veto.
“This significantly reduces the probability of a government shutdown," Goldman Sachs economists said in a note to clients.
A long-term federal budget deal and a debt ceiling increase must still be passed by Congress. Disputes over these issues between the two parties and among Republicans will not be resolved by Boehner’s departure.
“There is a clear possibility that the vote next week, which was initially expected to deal just with the extension of spending authority, could instead also address other issues like an extension of the Export-Import Bank and, possibly, even an extension of the debt limit,” Goldman Sachs’ note said.
However, the week’s calendar could provide other catalysts for volatility. A host of Federal Reserve officials are scheduled to speak, including chair Janet Yellen, New York Fed president William Dudley, Chicago president Charles Evans and San Francisco president John Williams.
Investors will also eye reports on US housing and manufacturing, and the week culminates with the September Labor Department payrolls and unemployment report.
Job growth is forecast to be 203,000 versus the prior 173,000, with the unemployment rate expected to hold steady at 5.1 per cent.