Investing.com - Wall Street futures pointed to a higher open on Monday as fresh hopes that Hillary Clinton will win the U.S. presidential election this week boosted appetite for riskier assets.
The blue-chip Dow futures jumped 234 points, or 1.31%, by 6:50AM ET (11:50GMT), the S&P 500 futures traded up 28 points, or 1.35%, while the tech-heavy Nasdaq 100 futures soared 72 points, or 1.54%.
The strong gains in S&P futures came after the principal benchmark index closed last Friday in the red for a ninth consecutive session, marking its longest losing streak since December 1980.
Risk-on sentiment was buoyed as the FBI announced on Sunday that it stood by a previous decision to not charge Democratic candidate Hillary Clinton over emails related to her private server.
The news lifted a cloud over Clinton's presidential campaign just two days before the U.S. election and possibly blunted momentum for rival Donald Trump.
Markets have tended to see Clinton as the status quo candidate.
Additionally, the risk-on attitude saw traders flee from safe haven assets such as the Japanese yen, gold or sovereign debt.
The Japanese currency was down 1.25% at 104.38 against the dollar at 6:52AM ET (11:52GMT) after surging to 104.63 in early trade. It had declined to 102.55 last week as polls showed a tightening U.S. presidential race.
In precious metals, gold prices lost 1.32% to $1,287.25 by 6:53AM ET (11:53GMT). Prices of the yellow metal rallied to a five-week high of $1,309.30 last Wednesday, as investors were rattled by signs the U.S. presidential election race was tightening.
Global government bond prices also retreated, with yields on the 10-year U.S. Treasury rising 1.42% to 1.808% by 6:5AM ET (11:55GMT), as risk appetite surged across the board.
In a further sign of positive investor sentiment, the VIX, known as the market’s fear gauge, tumbled 13.33% to 19.51 at 6:56AM ET (11:56GMT).
Meanwhile, the Mexican peso soared 2% against the dollar (USD/MXN), in a sign that investors now believe a victory for Clinton over her Republican rival Donald Trump in Tuesday’s election is more likely.
The Mexican currency, which has acted as a barometer of the markets' perception of a likely Donald Trump victory, has been sensitive to developments in the election amid fears that a victory for Trump could damage the country’s economy as he acts to raise obstacles against the southern neighbor.
With no major economic reports on tap for Monday’s session, investors will still eye the release of the Conference Board’s employment trends index, the Federal Reserve labor market conditions index or consumer credit.
Meanwhile, crude was also buoyed by risk appetite fuelled by the Clinton news and gained more than 1%.
Also adding upward pressure on black gold, the secretary-general of the Organization of the Petroleum Exporting Countries (OPEC) Mohammed Barkindo said the group was committed to an output-cutting deal made in Algiers in September, as well as a reported 5.0 magnitude earthquake that struck Sunday night near Cushing, Oklahoma, home of the largest U.S. commercial oil storage hub.
U.S. crude oil futures gained 1.75% to $44.84 at by 6:56AM ET (11:56GMT), while Brent oil traded up 1.40% to $46.22.