MARKET SNAPSHOT: U.S. Stocks Poised To Rally As Investors Breathe Sigh Of Relief Over French Vote

By Barbara Kollmeyer, MarketWatch Features Dow Jones Newswires

Investors also look ahead to tax reform news from President Donald 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 final 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 175 points, or 0.9%, to 20,678, while S&P 500 futures gained 23.85 points, or 1%, to 2,371.25. Nasdaq-100 futures surged 54 points, or 1%, to 5,495.75.

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 on 21.4%, and the two will now face off in the final round. 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 rose at the open, as the French CAC 40 surged nearly 4% at the start of trading, and the Stoxx Europe 600 index jumped 1.6%. The euro surged (http://www.marketwatch.com/story/euro-jumps-to-5-month-high-in-french-election-relief-rally-2017-04-24) 1.4% 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, gold , tumbled $13.60, or 1%, to $1,275.50 an ounce. Gold prices climbed Friday amid investor uncertainty ahead of the French election.

Yields for the 10-year Treasury jumped to 2.31% from 2.23% late Friday.

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.

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)

Stocks:Hasbro Inc.(HAS), Halliburton Co.(HAL) and Kimberly-Clark Corp.(KMB) are scheduled to report earnings ahead of the open on Monday.

Other markets: Oil prices rose 48 cents, or 0.2%, to $49.86 a barrel.

Stocks rose across Asia, with the exception of the Shanghai Composite Index , which fell 1.5% 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 03:11 ET (07:11 GMT)