By Barbara Kollmeyer, MarketWatch
S&P futures up 1.3% as news triggers relief rally
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 futures rose 221 points, or 1.2%, to 18,026, while S&P 500 futures jumped 26.25 points, or 1.3%, to 2,106.25. Nasdaq-100 futures 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 (http://www.marketwatch.com/story/fbi-review-of-clinton-emails-hasnt-led-to-new-findings-chaffetz-says-2016-11-06) 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.
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.
Read: Here are all possible election outcomes -- and how markets will react (http://www.marketwatch.com/story/heres-every-possible-election-outcome-and-every-market-reaction-2016-11-04)
The S&P 500 closed lower for the ninth-straight session on Friday, its longest losing streak since December 1980. The index 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 soared 1.6% as the Japanese yen fell against the dollar. The yen and gold are seen as assets that investors turn to in times of economicand political uncertainty.
Read:Election-inspired stock market volatility is overblown (http://www.marketwatch.com/story/election-inspired-stock-market-volatility-is-overblown-2016-11-05)
Gold soared 2.2% last week (http://www.marketwatch.com/story/gold-marooned-as-traders-brace-for-jobs-report-and-presidential-races-final-days-2016-11-04), boosted by gains in the polls for Trump, but on Monday the precious metal was down $14.80, or 1.13%, to $1,289.70 an ounce. Oil (http://www.marketwatch.com/story/oil-prices-rebound-driven-by-latest-us-political-developments-2016-11-07) 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 Yen104.49, versus Yen103.10 late Friday in New York. The ICE Dollar Index , which measures the greenback against a half-dozen rivals, rose to 97.59, from 97.03 on Friday.
The Mexican peso 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.
(END) Dow Jones Newswires
November 07, 2016 03:12 ET (08:12 GMT)
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