U.S. stock futures soared early Monday after the Federal Bureau of Investigation said its fresh review of Hillary Clinton’s emails won’t lead to charges, triggering a relief rally as political worries eased.
Kicking off with a rally in Asian trading hours, Dow Jones Industrial Average futuresYMZ6, +1.33% rose 221 points, or 1.2%, to 18,026, while S&P 500 futuresESZ6, +1.43% jumped 26.25 points, or 1.3%, to 2,106.25. Nasdaq-100 futuresNQZ6, +1.63% surged 68.5 points, or 1.5%, to 4,726.25.
FBI Director James Comey said Sunday he had informed Congress there were no new findings in the additional emails found on the computer of former Rep. Anthony Weiner, whose estranged wife is Clinton aide Huma Abedin. News that the FBI had discovered fresh emails just over a week ago jolted the presidential election race, taking a toll on the Democratic nominee Clinton’s lead in polls over rival Donald Trump.
FBI: New emails don’t change decision on Hillary Clinton
FBI Director James Comey announced Sunday that the bureau stands behind its prior decision not to recommend charges against Democratic presidential nominee Hillary Clinton.
Financial markets in general view a Clinton win as the better outcome in Tuesday’s election, as it presents fewer unknowns and possibly more stability for markets than victory for her Republican rival Donald Trump. The FBI’s latest announcement has “dealt a serious blow to Donald Trump’s chances of securing the White House, something the markets have responded very positively to,” said Craig Erlam, senior market analyst at Oanda, in a note to clients.
The S&P 500 closed lower for the ninth-straight session on Friday, its longest losing streak since December 1980. The index SPX, -0.17% fell 1.9% last week.
A short-lived rally? That’s not to say markets are out of the woods yet, and Erlam said Clinton’s email issues have created doubt among voters about whether they can trust her.
“This may be why we’re seeing sentiment improving this morning, but investors are not yet getting carried away. The investigation obliterated Clinton’s poll lead last week, and traders may be awaiting some indication that Clinton has retaken a convincing lead,” he said.
The appetite for riskier assets triggered a global equity rally, with European stock futures pointing to a sharply higher open. In Asia, the Nikkei 225 index NIK, +1.61% soared 1.6% as the Japanese yen USDJPY, +1.27% fell against the dollar. The yen and gold are seen as assets that investors turn to in times of economic and political uncertainty.
Gold soared 2.2% last week, boosted by gains in the polls for Trump, but on Monday the precious metal GCZ6, -1.49% was down $14.80, or 1.13%, to $1,289.70 an ounce. Oil CLZ6, +1.45% was also bid higher, up 56 cents, or 1.3%, to $44.64 a barrel.
The dollar saw big gains against the yen, last trading at ¥104.49, versus ¥103.10 late Friday in New York. The ICE Dollar Index DXY, +0.31% , which measures the greenback against a half-dozen rivals, rose to 97.59, from 97.03 on Friday.
The Mexican peso USDMXN, -1.6518% rose to $18.63 to the dollar, versus $19.02 earlier in Asia ahead of the FBI headlines. Many believe a Trump victory would harm the Mexican economy as the candidate has repeatedly promised to raise trade barriers and build a wall on the U.S.-Mexican border.
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