Wall Street raises debt ceiling, inflation worries cool

October 7 (Reuters) – U.S. stocks rose Thursday after a temporary deadlock on the debt ceiling in Congress allayed fears of a possible public debt default, while a Falling oil prices allayed fears of higher inflation.

U.S. Senate Republican Mitch McConnell on Wednesday launched a plan to support an extension of the federal debt ceiling through December, potentially avoiding a historic default. Democrats and Republicans in Congress were scheduled to continue negotiations on Thursday. Read more

“I didn’t think there would actually be a default, it’s a low probability, high severity possibility. And since this has been taken off the market, I’m not surprised to see this rebound in futures. “said Greg Swenson. , founding partner of Brigg Macadam.

Mega-cap stocks were back – Apple Inc (AAPL.O), Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O) rose 1.0% to 1.5% amid a drop in the benchmark 10-year US Treasury yield on Thursday.

The top 11 sectors of the S&P 500 rose in the first half hour of trading, with Finance (.SPSY), Technology (.SPLRCT), Materials (.SPLRCM), Industrials (.SPLRCI), healthcare (.SPXHC) and consumer discretionary (.SPLRCD) gaining more than 1%.

Major Wall Street indices are now pegged for weekly gains, recovering from bouts of selling pressure on high-growth stocks earlier in the week when Treasury yields soared.

“I am not worried about the short term markets and it is advisable to buy bears,” Swenson said.

European and Asian stocks rose earlier in the day after cooling oil and gas prices relieved investors worried about soaring inflation. The S&P 500 Energy Sector Index (.SPNY) lagged its peers, rising only 0.6%.

Data showed that 326,000 Americans filed new claims for unemployment benefits last week, below economists polled by Reuters forecasts of 348,000 claims. It also showed that layoffs rose from a 24-year low in September. Read more

It comes after a survey by the ADP National Employment Report showed a sharp increase in private payrolls in September and ahead of more comprehensive non-farm payroll data due on Friday. This should strengthen the case for slowing asset purchases by the Federal Reserve.

As of 9:46 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 376.57 points, or 1.09%, to 34,793.56, the S&P 500 (.SPX) was up 46.77 points, or 1.07%, at 4,410.32 and the Nasdaq Composite. (.IXIC) was up 172.48 points, or 1.19%, to 14,674.39.

Levi Strauss & Co (LEVI.N) jumped 7% after the jeans maker topped third-quarter revenue and profit estimates, spurred by increased demand for jeans as people refreshed their custody- dress. Read more

Snap Inc gained 2.8% after launching an in-app tool to educate users about the dangers of drugs. Read more

Conagra Brands Inc (CAG.N) rose 0.2%, beating quarterly revenue expectations after increasing the prices of its frozen meals and snacks. Read more

Rising issues outnumbered declines by a 4.52-to-1 ratio on the NYSE and by a 4.04-to-1 ratio on the Nasdaq.

The S&P Index recorded 23 new 52-week highs and three new lows, while the Nasdaq recorded 42 new highs and 33 new lows.

Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel

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