U.S. stock markets are expected to open higher Monday with futures gaining late Sunday after President Donald Trump backed down from threats and signed a nearly $900 billion coronavirus aid bill that will avert a government shutdown.
Dow Jones Industrial Average futures were last up about 70 points after the announcement Sunday night and the index is expected to open Monday up about a quarter of 1%. S&P 500 futures and Nasdaq-100 futures advanced between a quarter and a third of 1%, respectively, indicating rises at the bell.
Investors monitored the status of a $900 billion COVID-19 relief bill, which was passed by both chambers of Congress, but hadn't been signed by Trump. His resistance threatens a government shutdown when funding runs out Tuesday at 12:01 a.m. Trump had criticized the bill's $600 direct payments to Americans, demanding $2,000 checks instead.
"Trump has turned what is normally one of the slowest weeks of the year into a rather eventful period as investors watch to see whether the House can override his defense veto and if he makes good on his implied threat to veto the budget/stimulus legislation," Adam Crisafulli, founder of Vital Knowledge, said in a note.
Trump tweeted Sunday night that there will be "good news" on the relief bill.
Millions of Americans lost boosted unemployment benefits as the Pandemic Unemployment Assistance program expired overnight.
Wall Street is coming off a quiet holiday week where the major averages posted flat returns. The S&P 500 fell 0.2% last week as some investors took the chips off into the year-end. The 30-stock Dow eked out a 0.1% gain for the same period.
Selling of stocks that have made recent gains might increase in the final week of the year - which has so far seen surprisingly strong returns. The S&P 500 has gained 14.6% year to date, while the Dow has climbed 5.8%. The Nasdaq has risen 42.7% this year as investors favored high-growth technology names during the pandemic.
Dr. Anthony Fauci warned Sunday that the country could see an increase in new infections after Christmas and new year's celebrations. Two vaccines by Pfizer and Moderna have begun the distribution process this month. So far more than 1 million people in the U.S. have been vaccinated.
