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© Reuters
By Peter Nurse
Investing.com – US stocks are expected to open higher on Thursday, continuing late gains from the previous session with sentiment bolstered by fears of a possible debt default.
At 7:00 a.m.ET (11:00 a.m. GMT), the contract was up 235 points, or 0.7%, trading 35 points, or 0.8%, higher, while climbing 150 points, or 1%.
Major indexes closed higher on Wednesday, reversing earlier large losses after the Senate Minority Leader offered a compromise on a short-term suspension of the US debt ceiling to avoid a national default.
The blue chips rose 100 points, or 0.3%, after reversing a previous loss of more than 400 points. The index rose 0.4%, after falling to 1.3%, while the index rose 0.5%, reversing a previous loss of 1.2%.
Earlier this week, the Treasury Secretary said a default would cause “irreparable” damage, citing a likely financial crisis and recession.
Stock markets have been very volatile lately, driven by the uncertainty surrounding the country’s economic recovery. The sharp rise in energy prices has raised concerns on top of inflationary pressures, stifling growth while prompting the Federal Reserve to step up the tightening of its accommodative policies.
That said, US businesses created more jobs than expected in September, according to data released Wednesday, with private payrolls increasing 568,000 in August, the highest since June.
The ADP figures are a prelude to a broader reading of what comes out on Friday. Prior to that, weekly data, at 8:30 a.m. ET (12:30 p.m. GMT), is expected to drop to 348,000 for the week ending October 2, from 362,000 for the previous week.
In business news, clothing retailer Levi Strauss (NYSE 🙂 will be the center of attention after releasing strong quarterly numbers after the closing bell, benefiting from back-to-school demand. Cannabis company Tilray (NASDAQ 🙂 also reported a solid increase in quarterly revenue.
ConAgra Foods (NYSE :), the maker of brands such as Duncan Hines, Bird’s Eye and Hunt’s, is expected to report results Thursday, as the market heads into the main third quarter earnings season next week.
Falling energy prices also contributed to the tone in Europe on Thursday, after the United States said it was considering selling oil from its strategic reserves and Russia said it was ready to stabilize the market.
At 7 a.m. ET, futures were trading down 1.5% to $ 76.27 a barrel, the contract fell 1% to $ 80.30 and fell 0.8% to 2.2929 $ per gallon.
Additionally, it rose 0.1% to $ 1,762.75 / oz, while it traded 0.1% higher at 1.1563.
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