Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 01, 2023 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures rose on Monday following back-to-back weekly losses for the Dow Jones Industrial Average and S&P 500 as investors hoped Democrats and Republicans would reach a debt ceiling deal.
Dow futures gained 117 points, or 0.43%. S&P 500 futures climbed 0.4%, and Nasdaq 100 futures advanced 0.3%.
The S&P 500 and Dow lost 0.3% and 1.1%, respectively, last week with the Dow falling for five sessions in a row. The S&P 500’s two-week losing streak is its first since February amid worries about a recession and lack of debt ceiling talk progress.
Treasury Secretary Janet Yellen hinted over the weekend that the U.S. would avoid a default.
“I’m hopeful. I think the negotiations are very active. I’m told they have found some areas of agreement,” said Yellen in an interview with the Wall Street Journal on Saturday from Japan during a meeting of G-7 finance ministers.
Yellen told CNBC last week that failure to hatch an agreement on the debt ceiling would “produce financial chaos” with Treasury currently giving June 1 as the date when it could fail to meet its obligations. President Joe Biden is expected to host top Congressional leaders on Tuesday for debt ceiling talks.
Wall Street on Friday absorbed a preliminary reading from the University of Michigan that showed consumer sentiment falling to a six-month low as debt ceiling negotiations drag on and as inflation continues to linger.
On Monday, investors are watching for the May data for the Empire State Index, which will show how New York State manufacturers feel about the economy. Economists polled by Dow Jones are expecting a reading of 1.0, which would be lower than the 10.8 level in previous data.