Futures up on optimism over debt ceiling talks

(New York Fed Business Climate Index added, quotes updated)

May 15 (Reuters) – U.S. stock futures rose on Monday amid optimism over a possible debt limit deal. At the same time, investors are waiting for the Fed’s comments during the week.

Dow futures were up 0.16% at 15:47 Moscow time, the S&P 500 was up 0.2%, the Nasdaq 100 was up 0.21%.

US President Joe Biden said on Sunday that he expected to meet with representatives of Congress on Tuesday to negotiate an increase in the amount of public debt and prevent a catastrophic default.

Several months of standoff in Washington have added to concerns about the global economy as a new unbiased report from Congress puts it at “significant risk” of a historic default in the first two weeks of June.

Stocks fell slightly after data showed on Monday that the New York Fed’s economic climate index fell to minus 31.80 in May from 10.80 in March.

This week, investors are focused on comments from a number of Fed officials in various forums, including Friday’s speech by Chairman Jerome Powell.

Shares of ONEOK Inc earlier fell 4.3% over the counter after the company on Sunday agreed to buy U.S. pipeline operator Magellan Midstream Partners in an all-cash deal worth about $18.8 billion, including debt. Magellan jumped by 14.6%.

US-listed Chinese shares Alibaba Group Holding, Baidu Inc and JD.com Inc all add value in hopes of more stimulus.

Alphabet Inc, the owner of Google, fell amid reports that Loop Capital downgraded the company’s stock from buy to hold, while Meta Platforms Inc rose after the broker upgraded to buy.

The original message in English is available at the code: (Shreyashi Sanyal and Shristi Achar A in Bangalore)


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