Investors also look ahead to tax reform news from Trump this week
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U.S. stocks were set to rip higher on Monday, as perceived haven assets gold and the yen fell, after a first-round win for centrist Emmanuel Macron averted fears of a euroskeptic-only runoff in the French presidential election.
Investors were also waiting to hear more about a "massive" U.S. tax package that President Donald Trump said is coming on Wednesday.
Dow Jones Industrial Average futures shot up 213 points, or 1%, to 20,716, while S&P 500 futures surged 27.85 points, or 1.2%, to 2,375.50. Nasdaq-100 futures jumped 58.50 points, or 1%, to 5,500.75.
Stocks finished modestly lower on Friday (http://www.marketwatch.com/story/us-stocks-set-for-small-opening-gains-as-french-election-fears-linger-2017-04-21). But the major markets showed gains for the week: The Dow rose 0.5%, the S&P 500 advanced 0.9%, and the Nasdaq gained 1.8%, on the heels of two weeks of declines.
Macron won the first round of the French presidential voting with 23.9% of the vote, ahead of far-right euroskeptic candidate Marine Le Pen with 21.4%, and the two will now face off in the final round May 7. A poll late Sunday from Ipsos/Sopra Steria showed that Macron would likely win that runoff by 62% to 38%.
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Read:4 things investors need to know about France's presidential runoff (http://www.marketwatch.com/story/4-things-investors-need-to-know-about-frances-presidential-runoff-2017-04-23)
Conservative François Fillon and Socialist Benoît Hamon -- the mainstream candidates defeated in the first round -- both threw their support behind Macron. The support is seen as fending off Front National leader Le Pen, who has called for scrapping the euro and exiting the European Union.
"Her radical views on immigration, the European Union and the euro should see a solid resistance from the majority of the population," said Ipek Ozkardeskaya, senior market analyst at LCG, in a note to clients.
European stocks surged (http://www.marketwatch.com/story/french-stocks-head-for-2-year-high-after-macron-win-eases-frexit-fears-2017-04-24), with the French CAC 40 headed for its highest close since January 2008, climbing 4.3%. The Stoxx Europe 600 index leapt 1.9%, and Germany's DAX 30 index was up 3%. The euro gained (http://www.marketwatch.com/story/euro-jumps-to-5-month-high-in-french-election-relief-rally-2017-04-24) 1.3% against the dollar , hovering at five-month highs.
The Nikkei 225 rose nearly 1.4%, as investors backed away from perceived havens such as the Japanese yen. The dollar shot to over Yen110 from a level of Yen109 late Friday in New York.
Another haven asset, gold , tumbled $16.60, or 1.3%, to $1,272.50 an ounce (http://www.marketwatch.com/story/gold-futures-drop-as-macron-election-win-hits-safety-plays-2017-04-24). Gold prices climbed Friday amid investor uncertainty ahead of the French election.
Yields for the 10-year Treasury jumped to 2.29% from 2.23% late Friday. The closely watched yield premium that investors demand to hold 10-year French bonds, also known as OATs, over benchmark German government bonds narrowed to 41.40 basis points (http://www.marketwatch.com/story/french-bond-spread-narrows-to-4-month-low-as-frexit-fears-abate-2017-04-24) after widening to around 75 basis points, or 0.75 percentage point, ahead of the first round.
Anticipating a U.S. tax plan: Trump tweeted on Saturday (https://twitter.com/realDonaldTrump/status/855817226078879748) that he would announce a big tax reform package on Wednesday. Wall Street stocks pared losses on Friday after Trump told the Associated Press he would unveil a "massive tax cut" package in the coming week.
Read: Trump's tax reform may rekindle the dying embers of the stock-market rally (http://www.marketwatch.com/story/trumps-tax-reform-may-rekindle-the-dying-embers-of-the-stock-market-rally-2017-04-22)
"It could again be a make-or-break outcome for the U.S. markets, given that Mr. Trump often failed to provide satisfactory details on his 'massive' plans during his first 100 days at the office," said Ozkardeskaya, in a note.
For some, that could be more on the "make" side for stocks. "There were fears that the recent knockback on healthcare reforms may have stopped Trump in his tracks, yet this week's announcement will put the bulls in the driving seat even when the French feel-good factor has faded," said Joshua Mahony, market analyst at IG, in a note to clients.
See:This is where the stock market bears will make their last stand (http://www.marketwatch.com/story/this-is-where-the-stock-market-bears-will-make-their-last-stand-2017-04-21)
The session brings just one top-tier economic data report, the Chicago Fed national activity index. As for Federal Reserve speakers, Minneapolis Fed President Neel Kashkari is set to appear in a moderated discussion at UCLA Anderson School of Management in Los Angeles at 11:30 a.m. Eastern. He will then also take part in moderated discussion at Claremont McKenna College in Los Angeles at 3:15 p.m. Eastern.
Stocks:Hasbro Inc.(HAS) shares rose 1.7% premarket after profit and sales surpassed expectations (http://www.marketwatch.com/story/hasbros-stock-surges-after-profit-and-sales-rise-above-expectations-2017-04-24). Halliburton Co.(HAL) and Kimberly-Clark Corp.(KMB) were still to come ahead of the open on Monday.
Other markets: Oil prices rose 44 cents, or 0.9%, to $50.05 a barrel, as pressure from supply fears remained (http://www.marketwatch.com/story/oil-futures-rebound-from-last-weeks-slide-but-supply-pressure-remains-2017-04-24).
Stocks rose across Asia, with the exception of the Shanghai Composite Index , which fell around 1.4% as investors fretted about potential government action to cool the markets. (http://www.marketwatch.com/story/asian-markets-rally-after-french-election-results-2017-04-23)
(END) Dow Jones Newswires
April 24, 2017 07:01 ET (11:01 GMT)