US pre-open: Futures in the green as Congress offers to temporarily suspend debt ceiling
Wall Street futures were in the green ahead of the bell on Thursday as Congress looked to be nearing an agreement to raise the US debt limit and avoid a government default.
As of 1300 BST, Dow Jones futures were up 0.88%, while S&P 500 and Nasdaq-100 futures were trading 0.98% and 1.25% higher, respectively.
The Dow Jones closed 102.32 points firmer on Wednesday, reversing earlier losses.
Major indices got a boost on news that Senate Minority Leader Mitch McConnell had offered a short-term suspension proposal to Senate Democrats that will raise the debt ceiling by a certain amount and allow the government to continue operating until December.
Tech stocks like Twitter, Nvidia and AMD were trading higher before the open, while reopening plays GM and Southwest were also in the green and Costco shares advanced after posting better-than-expected sales for September.
AvaTrade's Naeem Aslam said: "US futures and European futures are up on the back of the news that the Biden administration offered a suspension of the debt limit, which had been causing volatility in equity markets over the past few weeks.
"Treasury Secretary Janet Yellen has repeatedly warned of the ramifications of the government failing to meet its obligations on time. She even went on to say that if the government defaults, the US economy is highly likely to go into recession. Similarly, President Biden cautioned that a default could wipe out jobs and have a toll on savings. Hence, this is why the offer is crucial because it will give time to both parties to reach a settlement and investors will not have to worry about the government defaulting by 18 October."
On the macro front, Challenger, Gray & Christmas revealed that US-based employers had cut 17,895 jobs in September, a 14% jump from August's 24-year low.
Still to come, this week's jobless claims report from the Labor Department will be released at 1330 BST and consumer credit change figures for August will follow at 2000 BST.
Dow Jones - Risers
Microsoft Corp. (MSFT) $293.11 1.51%
Procter & Gamble Co. (PG) $141.19 1.33%
Salesforce.Com Inc. (CRM) $275.27 1.29%
Coca-Cola Co. (KO) $53.71 1.19%
Visa Inc. (V) $226.51 0.99%
Travelers Company Inc. (TRV) $155.09 0.97%
McDonald's Corp. (MCD) $247.10 0.77%
Walmart Inc. (WMT) $137.62 0.73%
Apple Inc. (AAPL) $142.00 0.63%
Goldman Sachs Group Inc. (GS) $388.05 0.58%
Dow Jones - Fallers
Dow Chemical Co. (DOW) $57.16 -3.28%
Cisco Systems Inc. (CSCO) $53.94 -1.37%
Merck & Co. Inc. (MRK) $80.66 -1.15%
Amgen Inc. (AMGN) $209.98 -0.89%
Chevron Corp. (CVX) $104.93 -0.88%
American Express Co. (AXP) $173.40 -0.78%
International Business Machines Corporation (CDI) (IBM) $142.36 -0.55%
Nike Inc. (NKE) $148.80 -0.44%
Walgreens Boots Alliance, Inc. (WBA) $46.91 -0.38%
Caterpillar Inc. (CAT) $191.86 -0.33%
S&P 500 - Risers
Intercontinental Exchange Inc (ICE) $122.62 3.84%
CSX Corp. (CSX) $32.54 3.53%
Vulcan Materials Co. (VMC) $174.71 3.21%
Norfolk Southern Corp. (NSC) $262.53 2.90%
Martin Marietta Mtrl (MLM) $357.31 2.64%
PepsiCo Inc (PEP) $154.96 2.56%
Carmax Inc. (KMX) $129.27 2.41%
Twitter Inc (TWTR) $61.29 2.39%
Hershey Foods Corp. (HSY) $178.55 2.34%
Mondelez International Inc. (MDLZ) $60.20 2.33%
S&P 500 - Fallers
Electronic Arts Inc. (EA) $134.07 -6.95%
Nektar Therapeutics (NKTR) $16.12 -5.95%
Seagate Technology Plc (STX) $80.61 -5.33%
American Airlines Group (AAL) $20.54 -4.33%
Kohls Corp. (KSS) $45.93 -3.81%
PVH Corp. (PVH) $104.36 -3.74%
Ralph Lauren Corp (RL) $115.27 -3.50%
Devon Energy Corp. (DVN) $38.68 -3.49%
Arconic Inc. (ARNC) $30.76 -3.45%
FMC Corp. (FMC) $89.59 -3.43%
Nasdaq 100 - Risers
NetEase Inc. Ads (NTES) $88.71 6.65%
CSX Corp. (CSX) $32.54 3.53%
Mondelez International Inc. (MDLZ) $60.20 2.33%
eBay Inc. (EBAY) $71.54 2.24%
Vertex Pharmaceuticals Inc. (VRTX) $180.91 2.20%
Take-Two Interactive Software Inc. (TTWO) $165.44 2.11%
Workday, Inc. (WDAY) $256.33 1.70%
Microsoft Corp. (MSFT) $293.11 1.51%
Paypal Holdings Inc (PYPL) $264.06 1.50%
Biomarin Pharmaceutical Inc. (BMRN) $77.87 1.49%
Nasdaq 100 - Fallers
Electronic Arts Inc. (EA) $134.07 -6.95%
Seagate Technology Plc (STX) $80.61 -5.33%
American Airlines Group (AAL) $20.54 -4.33%
Mercadolibre Inc. (MELI) $1,548.57 -2.33%
Ross Stores Inc. (ROST) $105.88 -2.25%
Vodafone Group Plc ADS (VOD) $15.46 -2.15%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $368.21 -1.49%
Qurate Retail Inc. (QRTEA) $10.19 -1.45%
Liberty Global plc Series A (LBTYA) $29.57 -1.40%
Cisco Systems Inc. (CSCO) $53.94 -1.37%