NEW YORK, Dec 28 — Futures tracking the S&P 500 and the Nasdaq were at record levels today as President Donald Trump’s move to sign into law a long-awaited US$2.3 trillion (RM9.3 trillion) pandemic aid bill bolstered bets on a vaccine-led economic recovery.

In a sudden reversal late yesterday, Trump backed down from his earlier threat to block the bill, restoring unemployment benefits to millions of Americans and averted a federal government shutdown.

Airline shares were among the top gainers as the payroll aid is expected to provide some relief to the battered sector. United Airlines and American airlines surged more than three per cent each in premarket trading, while Delta Air lines rose 1.06 per cent and Southwest Airlines added 1.88 per cent.

Bank stocks were up about one per cent, with Wells Fargo and Goldman Sachs leading gains.

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Democrats in the US Congress today will put to vote a proposal for higher pandemic relief payments for Americans, although it appears unlikely to gain traction in the Republican-controlled Senate.

Fuelling the global appetite for risk, Britain and European Union clinched a lean post-Brexit trade deal on Thursday, while the launch of a mass Covid-19 vaccination drive in Europe over the weekend added to the upbeat mood.

Bets on a vaccine-led economic recovery and scores of fiscal and monetary stimulus have set the S&P 500 on course to rise about 15 per cent this year with technology mega-caps such as Apple Inc and Amazon.com Inc accounting for the bulk of those gains.

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Tech stocks lost some fizz in recent weeks as less-loved parts of the market such as energy, financials and small caps took centre stage on hopes of an economic rebound. Investors are also weighing their bets on US technology stocks in the coming year against the backdrop of pricey valuations and regulatory risks.

At 6.44am EST, S&P 500 E-minis were up 26.75 points or 0.72 per cent, Dow E-minis were up 174 points or 0.58 per cent and Nasdaq 100 E-minis were up 85.75 points or 0.68 per cent.

Oil stocks, including those of Exxon Mobil Corp, Chevron Corp and Occidental Petroleum Corp, gained between 1.7 per cent and 2.6 per cent, tracking higher crude prices.

US-listed shares of Alibaba Group fell 1.2 per cent, extending Thursday’s loss of 13.34 per cent after China launched an anti-trust probe into the company. — Reuters