US futures pointed to a higher open on Thursday after the House of Representatives passed a crucial deal to avert a potential US default. The optimism was further fueled by hints from US Federal Reserve officials that there might be a pause in rate hikes. Futures linked to the S&P 500, Dow Jones Industrial Average and Nasdaq Composite all showed positive movement, setting the stage for a potentially positive trading day.
US futures rise on ‘McCarthy’ deal
The House of Representatives’ approval of the bill came as a relief to investors, who grew concerned about the looming threat of a US debt default. Treasury Secretary Janet Yellen had warned the default could happen as early as Monday, leading to growing concern in markets. With a triumphant 314 to 117 approval, the bill will now go to the Senate, followed by the President’s signature, eventually turning it into law.
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While US markets found reasons for optimism, the tech-heavy Nasdaq Composite saw a small setback. The hype fueled by the artificial intelligence hype – which was a key driver of the recent Nasdaq rally – faltered after Nvidia’s overwhelming earnings report last week. This development prompted some caution from investors in the technology sector, but overall sentiment remained upbeat.
Futures contracts linked to the S&P 500 rose 0.34%, while the Dow Jones Industrial Average gained 48 points, or 0.2%, and the tech-heavy Nasdaq Composite gained 0.76%.
The crypto market is also recovering?
The upside in US futures and the potential for major market opening may have a domino effect on the broader cryptocurrency market. Despite a slight 0.43% drop in global crypto market cap and a notable 6.68% drop in total crypto volume to $32.07 billion in the last day, market participants continue to anticipate a trend reversal and a possible recovery in both stocks and cryptocurrencies.
In fact, at the time of writing, bitcoin price saw a marginal 0.35% gain, while Ethereum price saw a 0.28% gain in the minutes leading up to the market open. Most of the major altcoins followed a similar uptrend, with Polygon, Dogecoin, and Litecoin all seeing maximum price increases due to growing community support.
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