US pre-open: Stocks seen up; all eyes on debt ceiling talks

US stock futures pointed to a firmer open on Wednesday following a downbeat session a day earlier, as investors continued to eye debt ceiling talks.

At 1220 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.4%, while Nasdaq futures were 0.3% firmer.

James Harte, market analyst at Tickmill Group, said: "President Biden and Speaker of the House Kevin McCarthy met for the latest round of US debt ceiling talks yesterday. While both sides were seen showing a willingness to co-operate and achieve a deal, greenlighting staff-level negotiations, a resolution is yet to be agreed.

"With markets wary over the time limit at play here, the lack of progress yesterday is concerning and increases the likelihood of an historic US debt default. Given the looming deadline, Biden will cut his G7 trip short in order to keep negotiations on course to agree a deal before the June 1st deadline."

On the macro front, housing starts and building permits data for April are due at 1330 BST.

In corporate news, Target was in focus after the retailer beat earnings expectations for the first quarter but warned of a slowdown in sales.

Elsewhere, Western Alliance Bancorp rallied in pre-market trade after it said that deposits grew by more than $2bn since the quarter’s end.