U.S. stock futures rose on Monday after President Trump signed the Covid-19 aid bill, ending uncertainty about the rollout of a relief spending package.
Futures linked to the S&P 500 rose 0.8%, indicating that the benchmark index would open higher after the New York opening bell. The broad market gauge ended down about 0.2% last week. The Tech-G-focused Nasdaq-100 index gained 0.7%.
Mr. Trump’s signing of the 900 900 billion bill has paved the way for the government to make direct payments to American households as the growing coronavirus epidemic disrupts business and social activities. Investors expect that additional costs will help the economy amid restrictions imposed by states and local authorities to manage the spread of Covid-19 in the winter.
Under pressure from all sides, President Trump on Sunday signed the 900 900 billion Covid-19 relief bill.
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“Overnight, we got the excitement deal out of the blue. Economically, it is a big support to meet this difficult winter period, ”said Honey Reda, Multiset Portfolio Manager, Pinebridge Investments. “The market will still be in a constructive mood.”
Trading is likely to be thin this week, with many taking time off during the year-end holiday period. Low trade volume can lead to big moves in the markets.
In bond markets, the yield on the 10-year Treasury note rose 0.933% to 0.956% on Thursday, while trading ended on the Christmas holiday. As prices fall, yields rise.
Overseas, pan-continental stocks rose 0.7% in the Europe 600. Markets in the UK were closed for Bingxing Day.
Sentiment in the region rose after the European Union began distributing Covid-19 inoculation on Sunday. A few days ago, the European Union reached a post-Brexit trade agreement with the UK, ending years of uncertainty about future relations between the two sides.
“Every day that goes on, we remove more than we can add to the uncertainty,” Mr Redha said.
Trade in Asia closed on a mixed note. China’s Shanghai Composite Index was fairly flat while Japan’s Nikkei 225 rose 0.7%. Down 0.3% in Hong Kong’s Hang Seng.
Hong Kong-listed shares in Alibaba Group Holdings tumbled 8% on Monday. China’s central bank issued a stern statement on Sunday criticizing Ant’s business practices and instructing the financial-technology giant to turn its attention back to its digital payment business.
Write to Caitlin Ostroff at [email protected]
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