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On Thursday, the US stock market opened up.
At approximately 4.30 pm Norwegian time, the Democrats’ leader in the Senate, Chuck Schumer, states that they have entered into an agreement with the Republicans to raise the debt ceiling until the beginning of December.
Wall Street prices are rising further:
- Industrial-heavy Dow Jones, which consists of 30 hand-picked supposedly important stocks, rises 1.57 percent
- Nasdaq Composite, which is dominated by technology companies, rises 1.69 percent
- The S&P 500 index, which consists of 500 of the largest listed companies in the United States, rises 1.47 percent
In the pre-trade, it clearly pointed to an upturn on Wall Street. Dow Futures rose 274 points in pre-trade, the equivalent of 0.6 percent. S&P futures rose me 0.9 percent and Nasaq 100 futures by 1.1 percent.
Turned the stock market
The rise is seen in connection with the fact that it became clear on Wednesday night that the Republicans in the Congress in Washington are proposing a temporary solution that will ensure that the state apparatus’ debt ceiling is raised until December.
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On Thursday afternoon, the Democratic leader in the Senate, Chuck Schumer, stated that an agreement had been reached with the Republicans.
– We have agreed to raise the debt ceiling until the beginning of December, and it is our wish that we can start it as early as today, says Schumer according to CNBC.
He wants the agreement approved in a vote later Thursday.
Raising the debt ceiling means that it will be possible for the state to take on new debt and pay off debt obligations until December. If Congress does not reach an agreement, there will be a real risk that the United States will default on its government debt, but after yesterday’s news, it seems that the Republicans are reaching a compromise.
After Republicans in Congress on Wednesday proposed a temporary solution to raise the debt ceiling, Wall Street turned from downturn to upturn.
The Dow Jones finished more than 100 points higher. The S&P 500 rose 0.4 percent, after falling as much as 1.27 percent earlier in the day. Nasdaq Composite ended me up 0.5 percent, after falling 1.2 percent.
Unemployment figures better than expected
On Thursday, the weekly figures on the number of first-time applicants for unemployment benefits in the USA (jobless claims) also came out. Last week, there were 326,000 people, while it was expected in advance to be 348,000 people, according to a consensus forecast from Trading Economics.
The US labor market report will be presented on Friday. The job numbers, which are often referred to as “the most important numbers of the month”, will give new signals about the situation in the labor market, as well as wage growth in the USA. These are signals that the US Federal Reserve is closely following.
– There is reason to believe that the labor market figures will come in significantly higher than last time, at the same time as there are signs of increasing wage growth. It will be able to speed up interest rate expectations, chief economist Elisabeth Holvik told DN earlier this week.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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