US stocks trading down hours after debt ceiling deal reached

Fox Business Flash top headlines for October 7

Check out what’s clicking on FoxBusiness.com.

U.S. equity futures were trading down on the last trading day of the week, one day after the major stock indexes rose as lawmakers reached a deal on a short-term debt-limit extension.

Stocks in this Article

On Thursday, Wall Street's benchmark S&P 500 index rose 0.8% to 4,399.76 for its third straight daily gain after U.S. lawmakers agreed to extend Washington's borrowing ability into December. Lack of agreement might have led to a default experts say would set back a recovery from the coronavirus pandemic.

Despite that, "concerns around the U.S. funding its government have far from dissipated," Mizuho Bank’s Venkateswaran Lavanya said in a report.

DEMOCRATS TO LIMIT BIDEN'S PLAN GIVING IRS MORE INFO ON BANK ACCOUNTS

The Dow Jones Industrial Average gained 1% to 34,754.94. The Nasdaq added 152.10 points to 14,654.02.

Earlier, the S&P 500 swung between gains and losses of more than 1% for four days due to anxiety about the debt fight in Washington.

U.S. equity futures were trading mixed on the last trading day of the week, one day after the major stock indexes rose as lawmakers reached a deal on a short-term debt-limit extension. (Colin Ziemer/New York Stock Exchange via AP)

On Thursday, the Labor Department reported the number of people applying for unemployment fell last week.

Earlier, Fed officials responded to a spike in inflation by saying they wanted to be sure a recovery was established before withdrawing stimulus. Stronger employment might add to pressure for prices to rise faster, which investors worry might prompt the Fed and other central banks to wind down stimulus that has boosted stock prices.

Meanwhile, Asian stocks were mixed as investors waited Friday for U.S. jobs data that might influence a Federal Reserve decision on when to roll back stimulus after legislators in Washington averted a possible government debt default.

Market benchmarks in Shanghai, Tokyo and Sydney advanced. Hong Kong and Seoul retreated.

Investors were waiting to see whether U.S. hiring in September was strong enough for Fed officials who are discussing when to withdraw bond purchases and other stimulus that is boosting stock prices but say they want a healthy job market.

SUPPLY CRISIS DRIVES WALMART AND RIVALS TO HIRE THEIR OWN SHIPS

Friday’s Labor Department data "will decide, in the market’s minds, whether the start of the Fed taper is a done deal for December," said Jeffrey Halley of Oanda in a report.

The Shanghai Composite Index rose 0.3% to 3,578.35 as Chinese markets reopened following a five-day holiday. The Nikkei 225 in Tokyo jumped 1.6% to 28,134.86 while the Hang Seng in Hong Kong shed 0.1% to 24,667.13.

The Kospi in Seoul lost 0.2% to 2,955.55 while Sydney's ASX-S&P 200 added 0.7% to 7,307.80. India's Sensex opened up 0.8% at 60,157.35. New Zealand declined while Southeast Asian markets advanced.

In energy markets, benchmark U.S. crude rose $1.09 to $79.39 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 87 cents on Thursday to $78.30. Brent crude, the price basis for international oils, advanced 99 cents to $82.94 per barrel in London. It added 87 cents the previous session to $81.95.

CLICK HERE TO READ MORE ON FOX BUSINESS

The dollar rose to 111.89 yen from Thursday's 111.63 yen. The euro advanced to $1.1554 from $1.1550.

Source: Read Full Article