Stock futures advance as debt deadline fears fade

Stocks rose Thursday morning, with investors encouraged by developments in Washington as lawmakers came close to reaching a deal that would temporarily avoid a government default by the middle of the month.

During a normal trading day, the three major stock averages pared their earlier losses after Senate Minority Leader Mitch McConnell. I offered Democratic lawmakers a deal Temporarily extending the government’s borrowing limit until December. Such a move would provide time to prevent a government default that many critics said could come as soon as around October 18.

The debt ceiling issue has been a focal point for corporate leaders and market participants alike. Earlier on Wednesday, President Joe Biden met with business leaders including Jamie Dimon, CEO of JPMorgan And Adina Friedman, CEO of Nasdaq, Which urged lawmakers to raise the debt limit and prevent a government default and warned that it would be catastrophic for the US economy. Treasury Secretary Janet Yellen As he told CNBC She predicted that a government default would lead to a recession.

“The debt ceiling is one of the many factors right now that we think is causing this volatility in the markets. The market is sure to feel some relief when there is an agreement, and when it is more formal,” said Young Yu Ma, senior investment analyst for BMO Wealth Management, Yahoo Finance.

The debt ceiling controversy was just one of a number of concerns that have plagued the market in recent weeks, all of which have combined to spur volatility across risky assets.

In addition to concerns about the debt limit, Ma added, “markets are looking for some sort of solution, or at least an end in sight to supply chain issues, and inflationary pressures are building.” “Markets are also starting to look forward to the November meeting of the Federal Reserve, and hope that the Fed will not show excessive interest rate increases in the future as well…so a lot of things are going on.”

The sharp rise in energy and commodity prices also affected investor optimism, underpinning the continuing trend of rising price pressures across the global economy.

However, US crude oil futures fell for the second consecutive session on Thursday morning, adding to losses after… The Financial Times reported that US Energy Secretary Jennifer Granholm He has not ruled out releasing crude oil from the government’s Strategic Petroleum Reserve or banning crude exports to try to control prices. West Texas Intermediate crude reached its highest price since 2014 earlier this week.

“The surge in energy prices is going to make all the supply chain issues we’ve had over the past year worse. I think the supply chain issues are going to get worse before they get better,” Troy Vincent, senior market analyst at DTN, Yahoo Finance Live said.

7:25AM ET Thursday: A jump in stock futures, Nasdaq futures gain 1%

Stocks headed to a higher open Thursday morning. Here are the most important movements across the markets:

  • S&P 500 futures contractsES = F.): +39.25 points (+0.90%) to 4,393.25

  • Dow futures contractsYM = F.): +269 points (+0.78%) to 34,560.00

  • Nasdaq futures contractsNQ = F.): +167.00 points (+13%) to 14,926.00

  • raw (CL = F.):- $1.12 (-1.45%) to $76.31 per barrel

  • Went (GC = F.): + $2.70 (+0.15%) to $1,764.50 per ounce

  • Treasury for 10 years)^ degeneration): -0.3 basis points for 1.521%

6:05 PM ET Wednesday: Stock futures are up

Here’s where the markets are trading on Wednesday night:

  • S&P 500 futures contractsES = F.): +3.5 points (+0.08%) to 4357.5

  • Dow futures contractsYM = F.): +25 points (+0.07%) to 34316.00

  • Nasdaq futures contractsNQ = F.): +15.5 points (+0.11%) to 14774.50

NEW YORK, NY – SEPTEMBER 16: People walk near the New York Stock Exchange (NYSE) on September 16, 2021 in New York City. Despite the rise in retail sales, the Dow Jones Industrial Average declined on Thursday as investors continued to worry about variable delta and news of a slight rise in jobless claims. (Photo by Spencer Platt/Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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