U.S. futures on stocks rose Monday after President Trump signed a Covid-19 aid bill he had criticized last week, ending uncertainty over the deployment of the relief spending package.
Futures tied to the S&P 500 rose 0.8%, indicating that the benchmark will open higher after the New York opening bell. The broad market indicator ended last week down nearly 0.2%. Contracts linked to the technology-focused Nasdaq-100 index advanced 0.7%.
Trump’s signing of the $ 900 billion bill paves the way for the government to make direct payments to U.S. households as the growing coronavirus pandemic continues to disrupt social and business activity. Investors hope the additional spending will help cushion the economy amid restrictions set by states and local authorities to manage the spread of Covid-19 in the winter.
“Overnight, we completely removed the stimulus agreement. Economically speaking, it is a great support to overcome this difficult winter period, “said Hani Redha, multi-set portfolio manager at PineBridge Investments.” The market will still be in a constructive mood. “
This week’s trade is likely to remain low, as many people rest during the year-end holiday period. A lower trading volume could cause large movements in the markets.