What happened on the US stock market last night?

Here’s a recap of the US stock market overnight and what might be ahead for the ASX today…

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US economy and sharemarket with piggy bank

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ASX investors are readying up for the final trading day this week, with ASX futures indicating a further rise in the benchmark index. This follows strength in the US stock market overnight amid a short-term debt limit extension deal being reached.

At the time of writing, futures are suggesting a 0.53% bump in the S&P/ASX 200 Index (ASX: XJO) at the open.

What happened on the US stock market overnight?

The US market swiftly ascended in the early moments of trade last night. Pivotally, lawmakers in the United States senate revealed a proposed agreement to quell the debt defaulting fears. According to the Financial Times, the proposal would see the debt limit raised by $480 billion. In turn, the government would have enough funds to get itself through to early December.

Across the market, investors witnessed a 0.83% climb in the S&P 500 Index (SP: .INX). Meanwhile, the Dow Jones Industrial Average Index (DJX: .DJI) gained 0.98% to 34,754.94 points. However, the standout was the Nasdaq Composite (NASDAQ: .IXIC), as it rallied 1.05% during the Thursday night session.

Some of the best performers overnight included Twitter Inc (NYSE: TWTR), Advanced Micro Devices Inc (NASDAQ: AMD), and Cisco Systems Inc (NASDAQ: CSCO). These companies gained 4.4%, 2.7%, and 2.0% respectively.

Commenting on the US stock market developments last night, chief investment officer at UBS Global Wealth Management Mark Haefele said:

A temporary deal should help reduce debt-ceiling related market volatility over the next few weeks as attention shifts toward December.

All in all, 10 out of the 11 industry sectors across the US market finished higher last night, setting a positive tone for Australian shares on Friday.

Ahead on the ASX today

Many investors will be watching the energy sector closely today after oil prices got a boost overnight. According to Bloomberg, the price of crude oil rose 1.8% to US$78.84 a barrel. As a result, the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be in for a green session today.

In some not-so-positive news, EML Payments Ltd (ASX: EML) will have shareholders on the edge of their seats at the open on Friday. The payments company released an announcement late yesterday afternoon indicating further potential implications from the Central Bank of Ireland. This is in regards to the company’s Prepaid Financial Services (Ireland) Limited business.

Finally, ASX-listed tech shares will be front of mind today. This is on the back of the strong showing by tech names on the US stock market last night.

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Motley Fool contributor Mitchell Lawler owns shares of Advanced Micro Devices and EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Advanced Micro Devices, EML Payments, and Twitter. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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