U.S. stock futures advanced on Sunday, signaling Wall Street’s potential for another record performance, as bond markets assessed the outcome of Japan’s unexpected weekend election.
Futures linked to the Dow Jones Industrial Average gained 100 points, equivalent to 0.20%. S&P 500 futures increased by 0.35%, while Nasdaq futures surged 0.64%.
This follows Friday’s rally, where the index jumped 1,200 points to , powered by a strong rebound in chipmakers and airline stocks from a prior steep decline.
The 10-year U.S. Treasury yield increased by 1.8 basis points to 4.224%, mirroring a rise in Japanese yields, which climbed 4 basis points to 2.274%. After an initial rise, the U.S. dollar fell 0.24% against the Japanese yen.
Japanese Prime Minister Sanae Takaichi’s party secured a decisive victory in the lower house of parliament on Sunday, with voters strongly backing her right-wing platform that proposes fiscal stimulus measures.
However, concerns that this stimulus could exacerbate Japan’s budget deficit and substantial public debt are pushing its bond yields upward. This dynamic is pulling U.S. Treasury yields higher as Japanese government debt grows more appealing compared to U.S. bonds.
Gold prices rose 1.46% to $5,052 per ounce, and silver climbed 3% to $70.16, both recovering partially from significant earlier drops. U.S. crude oil futures declined 0.88% to $62.99 a barrel, and Brent crude fell 0.91% to $67.43.
Market participants are also anticipating major economic data releases in the week ahead. December’s retail sales figures are scheduled for Tuesday. The Labor Department will publish its January jobs report on Wednesday. January’s Consumer Price Index is set for release on Friday.