Wall Street points higher on hopes for US debt ceiling breakthrough

Wall Street pointed toward gains before the bell on Friday, potentially setting up markets for their best week since March as optimism about a US debt ceiling deal grew heading into the weekend.

Futures for the Dow Jones industrials and S and P 500 each rose 0.2 per cent in premarket trading.

Hopes are high that the United States Congress would reach a deal to avoid defaulting on the nation's debt.

President Joe Biden, in Hiroshima for the Group of Seven summit of major industrialised nations, has said he's confident about reaching a deal with Republicans to allow the US government to increase its credit limit and borrow more.

The US government is scheduled to run out of cash to pay its bills as soon as June 1 unless a deal is made, and economists say a US federal default could have catastrophic consequences across financial markets and the economy.

Stocks have remained remarkably resilient since early April despite a long list of worries.

A major reason for that is hope the Fede