A new report from the Congressional Budget Office has found that the stock market would rise by 0.3% if Congress passed a bill to reduce the debt. The idea of passing legislation to reduce the debt is gaining traction in Washington, with many politicians saying they are willing to consider it.
The stock futures cnbc is the stock market rising after a proposal to raise the debt ceiling was released.
Stock futures in the United States climbed as Republicans proposed a short-term debt-limit extension, easing fears of a government collapse.
The S&P 500 futures rose 0.9 percent on Thursday, suggesting that after a turbulent week of trading, the broad market index would climb. Futures for the Nasdaq-100, which is centered on technology, gained 1.1 percent, while futures for the Dow Jones Industrial Average rose 0.8 percent.
Concerns over the Treasury’s ability to generate funds to pay its obligations, as well as rising oil costs and a general rise in government bond rates, have weighed on investors this week. The Republican plan would extend the debt limit until December if Democrats agree to attach a monetary figure to it. Treasury Secretary Janet Yellen has warned that unless Congress acts, her department’s cash-saving strategies would be exhausted by Oct. 18.
“Right now, there are a lot of worries floating around. It just takes a few good events to completely alter the picture. “We got some good news on the debt limit last night,” Lewis Grant, an equities portfolio manager at Federated Hermes, said.
Twitter’s stock increased by 2.2 percent in premarket trading. Twitter said on Wednesday that it will sell MoPub, a mobile advertising company, to AppLovin for $1.05 billion in cash.
The yield on the benchmark 10-year Treasury note increased to 1.538 percent on Thursday, up from 1.524 percent the day before. Yields and prices move in opposite directions.
Brent oil futures fell 0.4 percent to $80.75 a barrel, the benchmark in international energy markets. In turbulent trading, futures for gas to be supplied in the Netherlands—the European benchmark—fell 5.2 percent to 102.99 euros, or about $119.04, a megawatt-hour. This occurred after Russian President Vladimir Putin stated on Wednesday that his country was willing to cooperate on stabilizing the global energy market, prompting natural gas prices to plummet from their all-time highs.
Meanwhile, the Stoxx Europe 600 index rose 1.3 percent, with the basic resources and auto sectors leading the way.
Asia’s indices likewise ended the day higher. The Hang Seng index in Hong Kong rose 3.1 percent, boosted by advances in technology firms. Chinese Estates (Holdings) stock surged 32% in Hong Kong on Thursday after the company’s majority owners proposed to take it private. The company is a significant stakeholder in the troubled China Evergrande Group.
The Kospi index in South Korea increased by 1.8 percent. The Nikkei 225 index increased by 0.5 percent.
In the week ending October 2, 326,000 Americans filed for first-time unemployment benefits, down from 364,000 the week before.
Concerns over the Treasury’s ability to generate funds have impacted heavily on investors.
Reuters photo/Brendan McDermid
Caitlin Ostroff can be reached at [email protected]
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Stocks are rising after the US government announced it would propose a debt ceiling increase. This is due to the fear that if there is no increase, the country will default on its debt. Reference: stocks to buy now.
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