US stock futures rose on Monday after President Trump signed the Kovid-19 aid bill that he criticized last week, ending uncertainty about the rollout of the relief spending package.
Futures for the S&P 500 climbed 0.8%, indicating that the benchmark index would be more open after New York’s opening bell. The broad market gauge dropped by about 0.2% last week. Contracts related to the technology-focused Nasdaq-100 index advanced 0.7%.
The signing of Mr. Trump’s $ 900 billion bill paves the way for the government to pay American families directly as the growing coronovirus epidemic disrupts business and social activity. Investors expect additional spending to help the economy amid restrictions imposed by states and local authorities to manage the spread of Kovid-19 in the winter.
“Overnight, we got a deal of complete excitement from Neela. Financially speaking, this is a major support to overcome this difficult winter period, ”said Hani Reda, a multiset portfolio manager at Pinebridge Investments. “The market is still in a creative mood.”
Trading is likely to remain slim this week, with many taking time off during the year-end holiday period. A low trading volume can lead to large moves in markets.
In bond markets, the yield on the 10-year Treasury note ticked from 0.933% to 0.956% on Thursday, when trading ended for the Christmas holiday. Yields increase when prices fall.
Overseas, the all-continental Stokes Europe grew 600% to 0.7%. Markets in the UK were closed for Boxing Day.
Emotions erupted in the region after the European Union began distributing Kovid-19 inoculations on Sunday. Just a few days ago, the European Union reached a post-Brexit agreement with Britain, ending years of uncertainty about future relations between the two sides.
“Every day that is going on, we are removing more uncertainties than adding them,” Mr. Reda said.
Business in Asia closed on a mixed note. China’s Shanghai Composite Index was largely flat, while Japan’s Nikkei gained 225% to 0.7%. Hong Kong’s Hang Seng closed down 0.3%.
Hong Kong-listed shares in Alibaba Group Holding declined 8% on Monday. China’s central bank on Sunday issued a harshly worded statement criticizing Ant’s business practices and directed the financial-technology giant to shift its focus back to its digital payments business.
Write Kaitlyn Ostroff at [email protected]
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