Peter Nurse   

Investing.com – U.S. stocks are seen opening higher Thursday, continuing the previous session’s late gains with sentiment boosted by reduced fears of a potential debt default.

The contract rose 235 points or 0.7% at 7AM ET (1100 GMT) while it traded higher by 35 points or 0.8%. It also climbed 150 points or 1% to a total of 121 points.

After the compromise reached by Senate Minority Leader, which included a temporary suspension of U.S. debt ceiling in order to avoid a default national default, major indices ended higher on Wednesday.

Following a 400 point loss, the blue chips gained 100 points (or 0.3%) The blue chips advanced 0.4% after dropping as much as 1.3%. Meanwhile, the rose 0.5% to reverse an earlier 1.2% loss. 

Earlier this week Treasury Secretary said a default would cause “irreparable” harm, citing a likely financial crisis and recession.

Stock markets have been very volatile of late, driven by uncertainty surrounding the country’s economic recovery. Concerns about the sharp increase in energy prices have led to increased inflationary pressures. This has slowed growth and prompted the Federal Reserve’s tightening of its accommodative policies.

According to Wednesday’s data, U.S. businesses added more jobs in September than expected, according the the, which released Wednesday’s data. Private payrolls rose by 568,000 in August, their highest increase since June.

ADP numbers will be followed by a larger reading on Friday. The weekly data is available at 8:30AM ET (1230 GMT). They will show that the number of ADP numbers has fallen to 349k for the week ended October 2, from 362,000 the previous week.

After reporting strong quarter-end numbers, Levi Strauss, a clothing retailer, will focus on corporate news. Tilray, a cannabis company (NASDAQ:), also saw a strong increase in its quarterly revenues.

ConAgra Foods (NYSE:), the maker of brands such as Duncan Hines, Bird’s Eye, and Hunt’s, is scheduled to report earnings Thursday, as the market heads into the main third quarter earnings season next week.

The European mood was also helped by the lower energy prices. This was after the United States stated that it is considering selling its oil strategic reserves, and Russia indicated it was willing to stabilize the market.

At 7AM ET futures had traded 1.5% lower at $76.27/barrel, 1% less than $80.30, 0.8% more than $2.292929 per gallon, and a total of 1.5% higher as of 7.11 AM ET.

Furthermore, it rose 0.1% to $1762.75/oz and traded 0.1% higher at 1.1563.