Futures Explode Higher After Summers Bows Out

Earlier today, we learned that former Treasury Secretary Larry Summers
withdrew himself as a candidatefor the next chairman of the Federal Reserve.

Summers was long considered one of the top two or three candidates to fill the seat that’s expected to be vacated in January by current Chairman Ben Bernanke.

Summers was considered more hawkish than the favourite, current Fed Vice Chairwoman Janet Yellen.

“Stocks should do very well,” tweeted PIMCO’s Bill Gross.

Currently, the dollar is falling, and U.S. stock index futures are exploding higher.

Dow futures are up 165 points. S&P 500 futures are up 17.8 points. These numbers suggest that U.S. stocks will open up by around 1% on Monday.

On Saturday, President Obama released a statement saying that the U.S. and Russia have “concrete step toward the goal of moving Syria’s chemical weapons under international control so that they may ultimately be destroyed.”

Markets may be encouraged by falling probability of a military strike on Syria.

Here’s a look at S&P futures via FinViz.

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