Dow Jones futures rose solidly Wednesday night, along with S&P 500 futures and Nasdaq futures. The major indexes rose modestly Wednesday, rebounding off sharp morning lows amid a McConnell debt-limit offer. It was a positive sign for the stock market rally attempt, but it’s still a market correction for now.
Senate Minority Leader Mitch McConnell said Wednesday that Republicans would let Democrats pass a short-term debt-limit extension, helping to avoid a looming default that could come as soon as Oct. 18. Democratic senators signaled they would accept the offer.
Affirm Holdings (AFRM) surged yet again on Wednesday, this time on a new “buy now, pay later” partnership with Target (TGT). AFRM stock spiked, flashing multiple buy signals and hitting its highest levels since February.
After the close, Twitter (TWTR) agreed to sell its MoPub mobile ad network to AppLovin (APP) for $1.05 billion. TWTR stock rose modestly in extended trading, trying to get above its 200-day and 50-day lines. APP stock surged 9.5%, signaling a strong move past a handle buy point.
Software Stocks Advance
SNOW stock, Fortinet (FTNT), Palo Alto Networks (PANW), Zscaler (ZS), Salesforce.com (CRM), Microsoft (MSFT) and Bill.com (BILL) are showing strength. Software makers are relatively insulated from supply-chain woes plaguing much of the economy.
Snowflake (SNOW), Fortinet, Palo Alto and ZS stock all rebounded from or reclaimed their 50-day moving averages, while Bill.com has bounced from its 10-week line. CRM stock rallied off its 21-day moving average, on the verge of reclaiming a breakout buy point. In a stronger market, aggressive investors could take advantage of all these names.
The price of Bitcoin raced higher Wednesday, topping $55,000 intraday before pulling back slightly. Bitcoin- and crypto-related plays also rallied, including Marathon Digital (MARA), Grayscale Bitcoin Trust (GBTC) and Coindesk (COIN).
Meanwhile, energy stocks fell solidly as oil prices declined and natural gas prices tumbled, after both had soared to record highs. Financials were steady as Treasury yields reversed from multimonth highs to finish slightly lower.
McConnell Debt Limit Offer
Senate minority leader McConnell said Republicans would let Democrats pass a two-month debt-limit extension via normal procedures. That would push off the risk of government default. Treasury Secretary Janet Yellen has suggested that Oct. 18 is the deadline, though other reports suggest the Treasury might be able to avoid a destabilizing default until early November.
McConnell’s offer came as Senate Majority Leader Chuck Schumer was poised to try yet again to push through a longer-term debt-limit hike, despite certain GOP opposition. Meanwhile, President Joe Biden urged some top CEOs at a White House meeting to raise the alarm on the debt limit. Democrats also have been trying to get centrist…
Read More News: Futures Rise After Stocks Rally On Debt Offer; Affirm Surges