European recovery plays surge while Nasdaq-100 futures slump after U.S. Senate passes $1.9 trillion stimulus plan

The Stoxx Europe 600 SXXP, +0.62% rose 0.6%, with companies that have struggled during the COVID-19 pandemic leading the way. Cruise operator Carnival CCL, +4.31%, oil services firm TechnipFMC FTI, +4.59%, tourism conglomerate TUI TUI, +3.56%, and shopping-mall operator Klepierre LI, +4.84% topped the leader board.

Prepared-foodkit maker HelloFresh HFG, -6.81% and hydrogen fuel company Nel NEL, -4.28%, both up over 100% over the last 52 weeks, declined sharply.

Futures on the tech-heavy Nasdaq-100 NQ00, -1.78% slumped 1.6%.

Florent Pochon, a strategist at French bank Natixis, said there are plenty of reasons for markets to be jittery, but he expects any tantrum for stocks to be limited as long as the Federal Reserve remains dovish.

“In terms of valuation, the U.S. 10-year does appear to be approaching fair value, bearing in mind all the uncertainty determining quite what it is,” he said. “Massive as the U.S. fiscal stimulus plan might be, it is not expected to generate elevated structural inflation, but rather deepen the country’s trade deficit.”

Shares in educational publisher Pearson PSON, +3.26% slumped 5%, as the company’s results and outlook were largely in line with expectations as it set out plans to sell its international courseware local publishing businesses and occupy less property.