Stock market today: U.S. futures point higher amid US debt ceiling fight, busy week for retail

Wall Street appeared headed for positive factors early Monday forward of a busy week in retail, with a backdrop of debt ceiling negotiations between U.S. President Joe Biden and Republican lawmakers.

Futures for the Dow Jones industrials and the S&P 500 rose 0.4% earlier than the bell.

Home Depot, Target and Walmart report earnings this week, which ought to present some extra clues as to how retailers and their consumers are dealing with rising costs and a slowing financial system.

Companies have largely been reporting strong quarterly earnings, although expectations have been modest.

On Tuesday, the Commerce Department releases U.S. retail gross sales information for April. In March, Americans minimize their spending at shops for the second straight month, suggesting Americans have gotten extra cautious.

Markets stay prey to worries about recession, excessive inflation and the U.S. authorities inching towards what could possibly be a catastrophic default on its debt.

President Joe Biden and congressional leaders postponed a gathering set for Friday on the debt restrict disaster to subsequent week, however the delay was billed as an indication of progress and staff-level talks continued via the weekend.

The Federal Reserve has been mountain climbing rates of interest to drive down inflation. Recent experiences counsel worth will increase are moderating although inflation is stays too excessive for the consolation of households and regulators.

The hope on Wall Street is that easing inflation could persuade the Fed to carry off on elevating charges once more at its subsequent assembly in June. That would supply some respiratory room to each the financial system, which has slowed below the load of upper charges, and to monetary markets, the place costs started falling way back.

Over the weekend, finance ministers of the Group of Seven superior economies wrapped up a gathering in Japan with a name for vigilance given many uncertainties for the worldwide financial system.

However, in addition they stated monetary techniques have proven resilience regardless of latest failures of a number of banks within the U.S. and Europe. No point out was made from the urgency of resolving the debt ceiling standoff between Biden and Republicans.

Elsewhere, at noon in Europe, Germany’s DAX inched up 0.1%, the CAC 40 in Paris gained 0.2% and Britain’s FTSE 100 climbed 0.4%.

This week additionally will convey main updates on the Japanese and Chinese economies. The latter has been displaying indicators of slowing after an preliminary restoration from disruptions brought on by the pandemic.

“The sharp moderation in China’s economic surprise index since the start of the month suggests that economic data are turning in less optimistic than before, which puts some doubts on markets’ reopening bets,” Yeap Jun Rong, a market analyst at IG, stated in a commentary.

A preliminary survey launched Friday stated client confidence within the financial system is faltering as worries persist over the danger of a recession and a attainable default on the U.S. authorities’s debt. But hopes for a decision to a standoff over elevating the debt ceiling gave the impression to be rising.

Tokyo’s Nikkei 225 gained 0.8% to 29,626.34. The index has been buying and selling close to its highest stage because the early Nineteen Nineties, with shopping for spurred by sturdy company earnings experiences and indicators that inflationary pressures may be easing.

Hong Kong’s Hang Seng index surged 1.8% to 19,971.13 whereas the Shanghai Composite index bounced again from early losses, gaining 1.2% to three,310.74. Australia’s S&P/ASX 200 edged 0.1% greater to 7,267.10, whereas the Kospi in South Korea picked up 0.2% to 2,479.35.

Benchmarks fell in Turkiye and Thailand following weekend election upsets for his or her ruling events.

In different buying and selling Monday, U.S. benchmark crude oil rose 66 cents to $70.70 per barrel. It misplaced 83 cents on Friday to $70.04 per barrel.

Brent crude, the pricing foundation for worldwide buying and selling, gained 63 to $74.80 per barrel.

The U.S. greenback rose to 136.03 Japanese yen from 135.69 yen on Friday. The euro was buying and selling at $1.0880, up from $1.0854.

On Friday, the S&P 500 misplaced 0.2% whereas the Dow ended barely decrease. The Nasdaq gave up 0.4%.

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Kurtenbach reported from Bangkok; Ott reported from Silver Spring, Md.