HomeFinancial MarketsU.S. Futures Rise Following Debt Ceiling Deal

U.S. Futures Rise Following Debt Ceiling Deal

Futures in New York rose during Monday’s morning session, thereby building on Friday’s strong finish. European stocks also experienced modest gains.

Contracts on the Nasdaq 100 jumped 0.5%, while those on the S&P 500 climbed 0.4% higher. Futures on the Dow Jones Industrial Average edged higher by a little under 0.1%. In Europe, the Stoxx Europe 600 rose 0.1% during early trading in London.

Investors expressed cautious optimism by returning to some riskier assets after it was announced late Saturday that the White House had reached an agreement to raise the government’s debt ceiling, thereby averting a catastrophic default.

President Joe Biden and House Speaker Kevin McCarthy both expressed confidence that the agreed-upon legislation will be passed by Congress. The government will need to enact the proposed law by June 1, the self-imposed deadline when the government will run out of cash.

Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors claimed that this development allows investors to focus once again on market fundamentals when making investment decisions. “The obvious positive interpretation is that a negative tail risk is close to being taken off the table,” Suzuki commented.

Marriott Projects Revenue Growth Amid Resilient Travel Demand

Marriott International forecasted on Wednesday that 3% to 6% growth in its annualized global revenue per available room for the two years ending 2025 as the...

Dollar and Stocks Steady as Bonds Ease From Record Highs

The U.S. dollar and stocks in New York stabilized on Wednesday, while U.S. Treasury Yields retreated from their 16-year high, easing pressure on the...

New Home Sales Plummet in August

Sales of new U.S. single-family homes plunged in August as the 30-year mortgage rate rose past 7%, thereby discouraging would-be buyers. According to data...