US stock futures rallied Monday after President Trump signed a Covid-19 aid bill he criticized last week, ending uncertainty over the emergency package rollout.
Futures pegged to the S&P 500 climbed 0.8%, indicating that the benchmark index will open higher after the opening bubble in New York. The broad market meter ended last week by almost 0.2% lower. Contracts linked to the technology-focused Nasdaq-100 index were up 0.7%.
The signing of the $ 900 billion bill by Mr. Trump paves the way for the government to make direct payments to U.S. households as the rising coronavirus pandemic continues to disrupt business and social activities. Investors expect the additional spending will help soften the economy amid restrictions put in place by states and local authorities to contain the spread of Covid-19 in winter.
Under pressure from all sides, President Trump signed a $ 900 billion Covid-19 bill on Sunday.
Photo:
andrew caballero-reynolds / Agence France-Presse / Getty Images
‘From one day to the next we got the stimulus agreement completely out of the blue. From an economic point of view, it is an important help in bridging this difficult winter period, ”said Hani Redha, a multi-asset portfolio manager at PineBridge Investments. “The market will still be in a constructive mood.”
Trading for this week is likely to remain lean, with many people taking time off at the end of the year during the holiday season. Lower trading volume could lead to large movements in the markets.
In bond markets, the yield on the 10-year Treasury tipped to 0.956%, up from 0.933% on Thursday, when trading ended before the Christmas holidays. Revenues rise when prices fall.
Abroad, the pan-continental Stoxx Europe 600 rose by 0.7%. UK markets were closed for Boxing Day.
Sentiment in the region was bolstered after the European Union began spreading Covid-19 vaccinations on Sunday. A few days earlier, the EU reached a post-Brexit trade deal with the UK, ending years of uncertainty about future relations between the two sides.
“Every day that passes, we take away uncertainties more than we add them,” said Mr. Redha.
Trade in Asia ended in a mixed tone. The Shanghai Composite Index in China was mostly flat, while the Nikkei 225 in Japan was up 0.7%. Hang Seng in Hong Kong fell 0.3%.
Hong Kong-listed shares in Alibaba Group Holding plummeted 8% on Monday. The Chinese central bank released a harshly worded statement on Sunday criticizing Ant’s business practices and instructing the financial technology giant to shift its focus back to its digital payments business.
Write to Caitlin Ostroff at [email protected]
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