(Businesshala) – US stocks were set to open higher on Thursday after a temporary truce in the debt-limit standoff in Congress eased concerns of a possible government debt default, while plunging oil prices blew up. Alleviated concerns of high inflation.
Top US Senate Republican Mitch McConnell on Wednesday planned to support an extension of the federal debt limit in December, potentially heading for a historic default. Congressional Democrats and Republicans were expected to continue talks on Thursday.
“I didn’t think there was actually going to be a default, it was low probability, high severity probability. And since it has been taken off the market, I am not surprised to see this boom in futures,” Brigg McAdam founding partner Greg Svensson said.
High-growth stocks were back in action on Thursday amid a drop in the benchmark US 10-year Treasury yield — Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc rose between 1.0% and 1.2%.
“I am not worried about the markets in the near future and it is advisable to buy in the fall,” Svensson said.
European and Asian stocks edged higher on the day after falling oil and gas prices gave investors relief from runaway inflation. US energy stocks, including Exxon Mobil Corp, Marathon Petroleum Corp and APA Corp, fell between 0.2% and 0.5%.
The number of Americans filing new claims for jobless benefits fell last week, data showed, but layoffs rose from a 24-year low in September.
On Wednesday, the ADP National Employment Report showed an increase of 568,000 jobs in private payrolls in the past month. Economists polled by Businesshala had forecast job growth of 428,000
This comes ahead of more comprehensive non-farm payroll data due Friday. This is expected to strengthen the case for slowing the Fed’s asset purchases.
At 8:40 a.m. ET, the Dow E-Minis were up 305 points, or 0.89%, the S&P 500 E-Minis was up 40.5 points, or 0.93%, and the Nasdaq 100 E-Minis was up 162.5 points, or 1.1%.
The jeans maker beat third-quarter revenue and profit projections to see Levi Strauss & Co. jump 4.7%, fueling a spurt in demand for jeans as people refreshed their wardrobes.
Snap Inc. gained 2.1% after launching an in-app tool to educate users about the dangers of drugs.
Conagra Brands Inc grew 1.7% as it beat quarterly revenue expectations after raising prices for its frozen meals and snacks.