Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Stocks rebound on progress toward U.S. debt ceiling resolution

Economy Oct 06, 2021 04:48PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man looks at stock market monitors in Taipei January 22, 2008. REUTERS/Nicky Loh 2/2
 
US500
-0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
+0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-2.97%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-3.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NG
-2.76%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Herbert Lash and Tom Wilson

NEW YORK/LONDON (Reuters) -Soaring energy prices retreated and stocks on Wall Street rebounded on Wednesday after the top U.S. Senate Republican backed an extension of the U.S. debt ceiling and Russia calmed volatile natural gas markets in Europe.

The unrelated moves eased growing angst among investors about a possible historic default on U.S. government debt and surging Dutch wholesale gas prices, the European benchmark, that had jumped eightfold this year to record highs.

U.S. natural gas futures plunged more than 10%, a day after they soared to a 12-year high.

Yields on one-month Treasury bills tumbled after Senate Minority Leader Mitch McConnell said his party would support an extension of the federal debt ceiling into December. Republicans had been expected on Wednesday to block a third attempt by Senate Democrats to raise the $28.4 trillion federal debt ceiling.

"There was a lot of nervousness that time was running out on debt ceiling talks," said Edward Moya, senior market analyst at OANDA in New York.

But the primary catalyst for the day's volatile market moves were the Russian decisions on natural gas, Moya said.

"The global energy crisis was becoming a focal point for inflation concerns," Moya said.

Earlier, a strong private payrolls report helped boost expectations that the U.S. Federal Reserve would soon taper its massive bond purchases.

U.S. private payrolls increased by 568,000 jobs in September as COVID-19 infections subsided, or 140,000 more than economists polled by Reuters had forecast, according to the employment report from ADP that pointed to a recovering jobs market.

Unless Friday's non-farms payroll report is a disaster, a taper announcement by the Fed in November can be expected with its quantitative easing program over by mid-2022, said David Petrosinelli, senior trader at InspereX in New York.

"QE buying, right now at full bore, at worst is limited or has no effect," Petrosinelli said, adding that inflationary pricing pressures in the economy are daunting.

"They're (the Fed) going to have to raise interest rates in 2022," Petrosinelli added.

MSCI's all-country world index pared losses of more than 1% to close almost flat, down 0.1%, while the broad Euro STOXX 600 index in Europe closed down 1.03%.

On Wall Street, the Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.41% and the Nasdaq Composite added 0.47%.

In Europe, euro zone yields rose as a government bond sell-off extended on inflation concerns and potential monetary policy tightening. A gauge of German inflation expectations hit its highest since May 2013.

Germany's 10-year government bond yield, the benchmark of the euro zone, rose as much as 4 basis points and hit its highest since the end of June at -0.147%.

Yields on the U.S. Treasury 10-year benchmark fell from more than three-month peaks. But the outlook for rates remained tilted to the upside.

The 10-year note's yield fell 0.7 basis points to 1.5241%.

The dollar rose toward a one-year high touched last week as inflation concerns fueled by surging energy prices and the outlook for rising rates knocked investors' appetite for riskier assets.

The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.228% to 94.219.

The euro was down 0.34% at $1.1557, while the yen traded down 0.04% at $111.4000.

The New Zealand dollar earlier extended losses after barely budging on the Reserve Bank of New Zealand lifting its official cash rate for the first time in seven years.

Oil prices dropped nearly 2% after hitting multi-year highs, a step back from recent torrid gains after U.S. crude inventories rose unexpectedly.

Behind oil's recent climb were concerns about energy supply and a decision on Monday by the Organization of the Petroleum Exporting Countries and allies to stick to a planned output increase rather than raising it further. [O/R]

Brent crude futures fell 1.79% to settle at $81.08 a barrel. U.S. crude settled down 1.90% to $77.43 a barrel.

U.S. gold futures settled up 0.1% at $1,761.80 an ounce.

Stocks rebound on progress toward U.S. debt ceiling resolution
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (11)
Vlad Lozovskiy
Vlad Lozovskiy Oct 06, 2021 4:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Print, party, drink, have fun! Let's push catastrophe further away, and make it bigger!!!
jason xx
jason xx Oct 06, 2021 4:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No progress was made. They only agreed to an extension for democrats to do something they already refused to do. Why is everyone tricked so easy?
Bill Ackman
Bill Ackman Oct 06, 2021 4:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
America would punish Europe if they buy gas from Russia xDDDDD you know who is calling the shots xDDD
Fabio falec
falec Oct 06, 2021 4:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US = Japan 1989 2.0
Damian Ciceri
Damian Ciceri Oct 06, 2021 12:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
inflation concern simmer? I guess that's another way to say it's cooking the economy at a lower heat for now. smh
William Bailey
William Bailey Oct 06, 2021 9:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed pumping in remainder of 80b to buey markets …. Bloodbath coming . Cash burning off and being wasted on chump coins
Rul Buz
Rul Buz Oct 06, 2021 5:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Man opec+ should think a bit about inflation worldwide and econmic recoveries they shouldve pumped 1m barrel instead of 500k now this is gonna ********us all…
Shane Weddle
Shane Weddle Oct 06, 2021 5:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Im sure they will next meeting. They just want to he sure and make some $ in the meantime.
Fong SH
Fong SH Oct 06, 2021 3:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's always this jumpy & wild swings in financial markets during this time of the year, from August onwards through November, than a quiet session, whereby all Fund  Managers will start to readjust their books again & start buying. Coming soon will be the Black Monday in October lol, which happened in 1987 but it can be haunt & been haunting the world for generations. lol To me, it's a buying opportunities, thanks to all these crab stories. Cheers!
Fong SH
Fong SH Oct 06, 2021 3:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The US financial markets is playing with fire against China's financial markets  In this round of sell-off in Asian markets, especially HongKong Market, Hang Seng, China did her own story of under-valued companies, went into investigations & so forth. Hang Seng went into spin, bad news almost everyday, bringing the HSI down by more than 10% since August till now. Well, it's a self-correction, thus it's not that bad, as all the bad news were self inflict, for e.g. news about Evergrande saga. These news invited short-sellers & hedge funds into Hang Seng Index & HongKong markets, daily trading volume is always around 2 to 2.5 billion exchanging hands, that's a hefty amount of income for the stock exchange there. lol.
Justin yodar
Justin yodar Oct 06, 2021 3:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeah that a huge amount of money there lol
Bill Ackman
Bill Ackman Oct 06, 2021 2:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil should be at least $200 per barrel
Daniel Bonnichsen
Daniel Bonnichsen Oct 06, 2021 2:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil should be 10.000$ per barrel
Rodney Dangerfield
Rodney Dangerfield Oct 06, 2021 2:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
those evil Democrats if they didn't take money from the same people Republicans did maybe some of these comments would make sense
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email