U.S. stock futures rose Monday after President Trump signed a Covid-19 bill he criticized last week, ending uncertainty over the deployment of the aid package.
Futures linked to the S&P 500 climbed 0.8%, indicating that the benchmark index will open higher after the opening clock in New York. The broad market meter declined by almost 0.2% last week. Contracts linked to the technology-oriented Nasdaq-100 index rose 0.7%.
Mr. Trump’s signing of the $ 900 billion bill paves the way for the government to make direct payments to US households as the rising coronavirus pandemic continues to disrupt business and social activities. Investors expect that the additional spending could dampen the economy amid restrictions imposed by states and local governments to manage the distribution of Covid-19 over the winter.
Under pressure from all sides, President Trump on Sunday signed a $ 900 billion Covid-19 bill.
Photo:
andrew caballero-reynolds / Agence France-Presse / Getty Images
‘Overnight we got the stimulus deal completely out of the blue. Economically speaking, it is a great support to bridge this difficult winter period, ”said Hani Redha, portfolio manager of various assets at PineBridge Investments. “The market is still going to be in a constructive mood.”
This week’s trading is likely to remain small, and many people are taking time off during the holiday period for the year – end. A lower trading volume can lead to large movements in the market.
In the bond markets, the yield on the 10-year treasury note rose to 0.956%, from 0.933% on Thursday when trading for the Christmas holidays ended. Yields rise when prices fall.
Overseas, the pan-continental Stoxx Europe 600 rose 0.7%. Markets in the UK were closed for Boxing Day.
Sentiment in the region grew strong after the European Union began distributing Covid-19 vaccines on Sunday. Just a few days earlier, the EU had reached a post-Brexit trade agreement with the United Kingdom, ending years of uncertainty over future relations between the two parties.
“Every day that passes, we remove uncertainties more than we add to them,” he said. Redha said.
Trade in Asia closed on a mixed note. The Chinese Shanghai Composite Index was largely flat, while the Nikkei 225 rose 0.7% in Japan. Hong Kong’s Hang Seng fell 0.3%.
Shares in Alibaba Group Holding, which is listed in Hong Kong, tumbled 8% on Monday. China’s central bank issued a sternly 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 by [email protected]
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