US Stock, Bond Futures Advance After Summers Withdraws Fed Candidacy

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U.S. stock futures advanced and futures for the U.S. Treasury 10-year note gained late Sunday after Lawrence Summers withdrew his candidacy for chairman of the Federal Reserve, as investors bet his exit could mean a slower tapering of monetary stimulus by the U.S. central bank.

Traders work on the floor of the New York Stock Exchange

U.S. stock futures advanced and futures for the U.S. Treasury 10-year note gained late Sunday after Lawrence Summers withdrew his candidacy for chairman of the Federal Reserve, as investors bet his exit could mean a slower tapering of monetary stimulus by the U.S. central bank.

S&P Index equities futures opened higher and gained more than 1 percent as of 6:23 p.m. (2223 GMT). Futures for the 10-year Treasury bond gained more than 1 point, or nearly 1 percent, indicating that benchmark Treasury yields would fall.

Of the two leading candidates for the Fed chairmanship, Summers was widely regarded as more eager to taper the Fed's $85 million a month bond-buying program. Janet Yellen, the Fed's current vice chair and the other leading candidate, has been more widely perceived by investors as favoring a more gradual easing of stimulus.

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