(Bloomberg) — Stocks rose with U.S. equity futures Tuesday on signs that U.S. President Joe Biden may yet revive his $2 trillion economic agenda, and wagers that vaccines can help tame the omicron virus outbreak.
Contracts on U.S. gauges rose, signaling a rebound after the S&P 500 Index’s worst drop in three weeks. Nike Inc. climbed in premarket trading after its sales beat estimates, while chipmakers got a boost from Micron Technology Inc.’s bullish revenue outlook. Miners led the rebound in European shares as commodities gained.
Markets have whipsawed going into the holiday season as investors assess economic risks from the spread of the omicron virus variant and a hawkish central-bank pivot. While sentiment took a hit after Democratic Senator Joe Manchin rejected President Joe Biden’s tax-and-spending package on Sunday, a call between the two has stoked optimism the deal isn’t dead.
Treasury yields and oil prices rose, while the dollar were little changed. European power prices surged to a record amid a crunch in France.
“There is more uncertainty than I think most people thought we would see here as they were anticipating a Santa Claus rally,” Victoria Fernandez, Crossmark Global Investments chief market strategist, said on Bloomberg Television. “Volatility and uncertainty are the key terms that will lead us into the new year.”
Biden will send 500 million free coronavirus tests to Americans’ homes beginning next month and dispatch the military to shore up overwhelmed hospitals, aiming to boost testing, hospital care and vaccinations without any new lockdowns or closings.
Meanwhile, U.S. renewable-energy shares gained in early New York trading on optimism about the American fiscal stimulus package, which includes a funding pledge to tackle climate change.
Elsewhere, iron ore led gains in metals and Bitcoin rallied to climb past the $48,000 level.
Asian shares were bolstered by a rebound in Japan and a rally in Chinese property developers. Turkey’s lira swung wildly after rallying nearly 50% this week, as investors weighed the sustainability of government measures to shore up the currency.
What to watch this week:
- EIA crude oil inventory report Wednesday
- Bank of Japan Governor Haruhiko Kuroda speaks Thursday
- U.S. consumer income, new home sales, U.S. durable goods, University of Michigan consumer sentiment, initial jobless claims. Thursday
- Friday: U.S. markets are closed. European markets close earlier
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 1% as of 7:01 a.m. New York time
- Futures on the Nasdaq 100 rose 1.1%
- Futures on the Dow Jones Industrial Average rose 0.9%
- The Stoxx Europe 600 rose 1.1%
- The MSCI World index rose 0.4%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1287
- The British pound rose 0.3% to $1.3247
- The Japanese yen was little changed at 113.70 per dollar
Bonds
- The yield on 10-year Treasuries advanced two basis points to 1.44%
- Germany’s 10-year yield advanced three basis points to -0.34%
- Britain’s 10-year yield advanced five basis points to 0.82%
Commodities
- West Texas Intermediate crude rose 1.7% to $69.76 a barrel
- Gold futures rose 0.2% to $1,797.60 an ounce
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