Wall Street Rises as Debt and Energy Concerns Ease | Business and Economy News

Markets have been rocked in recent weeks by fears of an energy crisis, high inflation and reduced stimulus measures.

US stocks rose on Thursday, supported by progress in talks on the US debt ceiling and allaying concerns about the energy crisis in Europe.

The S&P 500 climbed to 1.5% before fading on news of China’s intention to tighten its watch on tech companies. The gains were led by the materials and consumer discretionary sectors, putting the benchmark on track for its best three-day advance since July. The yield on the 10-year US Treasury bill hit 1.57%, the highest since June.

“We had a 24 hour period where we pulled back from some of the main risk factors that have preoccupied the markets,” said Giorgio Caputo, senior portfolio manager at JO Hambro Capital Management.

Markets have been rocked over the past month by concerns about an energy crisis, high inflation, reduced stimulus and slower growth. However, the prospect of a short-term extension of the US debt limit alleviates concerns about political wrangling. Natural gas prices were also down Thursday after signals that Russia may increase supplies to Europe.

“The volatility that we’ve seen in the markets here this week – where we’re up one day, down the next day – is really a reflection of the news cycles and the different news we’ve received,” Chris Gaffney, president of global markets at the TIAA Bank, said by phone.

Then all eyes will be on US non-farm wages on Friday, which could shed light on the Federal Reserve’s timeline to cut bond purchases. There is growing optimism that the report will show the kind of “decent” job growth Fed Chairman Jerome Powell says he wants. Initial jobless claims in the United States fell more than expected last week and ADP employment numbers exceeded expectations for September.

“Both really reflect that the job market is getting stronger and people are returning to work,” Gaffney said of the latest employment data. “This certainly bodes well for the future of the markets as the more people who work, the higher the expense can be as people return to work.”

Oil reversed its losses after the US Department of Energy said it had no plans to exploit oil reserves. The dollar has changed little. Gold has fallen.

For more market analysis, read our MLIV blog.

Here are some events to watch this week:

Reserve Bank of India monetary policy decision Friday
US Department of Labor releases unemployment and job creation data on Friday
Some of the main movements in the markets:

Actions

• The S&P 500 rose 1.1% at 3:29 p.m. New York time
• The Nasdaq 100 rose 1.2%
• The Dow Jones Industrial Average rose 1.2%
• The MSCI World index rose 1.3%

Currencies

• The Bloomberg Dollar Spot Index changed little
• The euro was little changed at $ 1.1553
• The British pound rose 0.3% to $ 1.3619
• The Japanese yen fell 0.2% to 111.63 per dollar

Obligations

• The yield on 10-year treasury bills rose five basis points to 1.57%
• The German 10-year yield was little changed at -0.19%
• The UK 10-year yield was little changed at 1.08%

Merchandise

• West Texas Intermediate crude rose 1.3% to $ 78.77 a barrel
• Gold futures fell 0.3% to $ 1,756.30 an ounce