US futures rose Monday after President Trump signed a Covid-19 bill he criticized last week, ending uncertainty over the implementation of the aid package.
S&P 500 futures rose 0.8%, indicating that the benchmark will open higher after the opening bell in New York. The broad market ended last week down almost 0.2%. Contracts related to the technology-focused Nasdaq-100 index rose 0.7%.
Trump’s signing of the $ 900 billion bill paves the way for the government to make direct payments to American households as the growing coronavirus pandemic continues to disrupt commercial and social activity. Investors expect the additional spending to help dampen the economy amid restrictions on states and local authorities to manage the spread of Covid-19 during the winter.
Under pressure from all parties, President Trump signed a $ 900 billion Covid-19 aid bill on Sunday.
Photo:
andrew caballero-reynolds / Agence France-Presse / Getty Images
“Overnight, I got the stimulus agreement completely out of the blue. Economically, it is a major support to cover this difficult winter period, “said Hani Redha, multi-asset portfolio manager at PineBridge Investments. “The market will continue to be in a constructive state.”
This week’s trades are likely to remain slim, with many people taking leave during the holiday season. A lower trading volume could lead to large movements in the markets.
In the bond markets, the yield on the 10-year treasury note ticked up to 0.956%, from 0.933% on Thursday, when trading ended for the Christmas holidays. Yields increase when prices fall.
Abroad, mainland Stoxx Europa 600 rose 0.7%. Markets in the UK have been closed for Boxing Day.
Sentiment in the region was backed after the European Union began distributing Covid-19 vaccines on Sunday. Just a few days earlier, the EU reached a post-Brexit trade agreement with the United Kingdom, ending years of uncertainty about future relations between the two sides.
“With each passing day, we eliminate uncertainties more than we add them,” Mr Redha said.
Transactions in Asia ended on a mixed note. China’s Shanghai Composite Index was largely flat, while Japan’s Nikkei 225 rose 0.7%. Hong Kong’s Hang Seng fell 0.3%.
Shares listed on Hong Kong by Alibaba Group Holding fell 8% on Monday. China’s central bank released a harsh statement on Sunday, criticizing Ant’s business practices and instructing the financial-technology giant to turn its attention to its digital payments business.
Write to Caitlin Ostroff to [email protected]
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