By Barbara Kollmeyer, MarketWatch
S&P futures up 1.3%, Nasdaq-100 futures add 70 points 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.
Dow Jones Industrial Average futures rose 227 points, or 1.3%, to 18,032, while S&P 500 futures jumped 30 points, or 1.4%, to 2,110. Nasdaq-100 futures surged 69.75 points, or 1.5%, to 4,727.50.
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 is 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 economic and 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 was down $16.60, or 1.3%, to $1,287.90 an ounce, after gaining (http://www.marketwatch.com/story/oil-prices-rebound-driven-by-latest-us-political-developments-2016-11-07)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) on a boost in the polls for Trump. Oil (http://www.marketwatch.com/story/oil-prices-rebound-driven-by-latest-us-political-developments-2016-11-07) was bid higher, up 77 cents, or 1.8%, to $44.83 a barrel.
The dollar saw big gains against the yen, last trading at Yen104.29, 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 pesorose to $18.70 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.
Read: These 5 charts show the global relief rally after FBI clears Clinton--again (http://www.marketwatch.com/story/these-4-charts-show-the-global-relief-rally-after-fbi-clears-clinton-again-2016-11-07)
A reading on consumer credit is the only data due for release on Monday, expected at 3 p.m. Eastern Time.
Stocks to Watch: Shares of Warren Buffett's Berkshire Hathaway Inc.(BRKA) (BRKA)rose in premarket by around 1% after the multinational conglomerate posted results (http://www.marketwatch.com/story/warren-buffetts-berkshire-hathaway-posts-lower-profit-2016-11-04) late Friday.
Read:Cash at Buffett's Berkshire Hathaway hits record with stock market near highs (http://www.marketwatch.com/story/cash-at-buffetts-berkshire-hathaway-hits-new-record-with-stock-market-near-highs-2016-11-05)
Shares of LendingClub Corp.(LC) jumped 4% in premarket trade after results of the online credit marketplace beat forecasts (http://www.marketwatch.com/story/lendingclubs-stock-jumps-after-results-beat-expectations-2016-11-07).
Auction house Sotheby's (BID) posted a wider-than-expected loss, but revenue beat forecasts. Still to come, Dean Foods Co.(DF), with Priceline Group Inc.(PCLN) scheduled after the close.
(END) Dow Jones Newswires
November 07, 2016 07:45 ET (12:45 GMT)
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