Talks to end the U.S. shutdown and extend the government's borrowing authority beyond an October 17 deadline failed to reach an agreement on Thursday, but hopes were raised that a deal might be made on Friday.
U.S. stock futures headed higher, unwinding earlier losses, after House Republicans said the president did not flatly reject their offer of a short-term debt limit plan.
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Earlier Thursday, House Speaker John Boehner led a delegation of Republicans to the White House for a late-afternoon meeting with President Barack Obama as the two sides groped for a way out of the latest in a string of crises.
The U.S. shutdown has lasted 10 days, undermined sentiment in financial markets and left hundreds of thousands of federal employees out of work.
Following the meeting, Rep. and Vice Chair of the House Republican Conference Lynn Jenkins, said, "Opening the government is a negotiation that will happen tonight and in the hours ahead, and we hope to have it open by Monday night."
During the meeting, Obama and congressional Republicans found no specific way forward to break their impasse over the government shutdown and extending the U.S. debt ceiling, the White House said.