U.S. stock futures were flat on Wednesday evening as Wall Street hoped the debt ceiling crisis would be resolved soon.
Dow Jones Industrial Average Futures It fell 28 points or 0.08%.futures linked S&P 500 Index and Nasdaq 100 Futures fell 0.05% and 0.02%, respectively.
During Wednesday’s regular session, the major stock indexes closed higher. The Dow rose more than 400 points.this S&P 500 Index rose 1.19%, of which Nasdaq Composite Index Up 1.28%. A rebound in regional bank stocks also contributed to Wednesday’s gains. The SPDR S&P Regional Bank ETF (KRE) rose more than 7%, while Western Alliance shares rose more than 10%.
Investor sentiment appeared to pick up after leaders in Washington said they were moving forward with debt ceiling talks. House Speaker Kevin McCarthy said Wednesday on CNBC’s “Squawk Box” that he doesn’t think the U.S. will default. President Joe Biden also said in later remarks that he believed lawmakers would come together to reach a deal and avoid a default.
Meanwhile, Wells Fargo’s head of equity strategy, Chris Harvey, is skeptical of Washington’s progress in debt-ceiling talks.
“We still think the macro is going to start affecting things. We think people are getting too excited about the debt ceiling in the short term. We think there’s probably more downside over time,” Harvey said on CNBC’s “Closing Bell” Wednesday. Voice: Overtime” program.
“We think it’s going to become more vulnerable over time,” he continued. “We do think (there will be) a deal, but we think it’s overly optimistic at the moment.”
Investors will be watching retail giant Walmart’s earnings report on Thursday morning for insights into the health of consumers. Chinese tech giant Alibaba is also due to report earnings before the market opens.
Wall Street will also be watching weekly jobless claims as a gauge of the strength of the labor market. The Philadelphia Fed’s manufacturing survey for May will also be released Thursday morning, along with existing home sales for April.