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Technology shares led a rally in U.S. stock futures, while Treasuries surged the most since June and the dollar weakened as a too-close-to-call American election zapped expectations for a massive federal spending bill.

Futures on the Nasdaq 100 jumped more than 3% and the 10-year Treasury yield slumped below 0.8% as the outcome of the presidential vote remained uncertain. With Congress predicted to remain divided, investors have scaled back bets that lawmakers will inject enough cash into the economy to stoke growth and offset the damage from the virus. Traders poured into the megacap tech shares that have carried stock gains throughout the tumultuous year. The Cboe Volatility Index slid toward 30.

“The reflation positioning had been stretched and it looks to have started to reverse coming into this morning,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management. “It’s just going to be hard for those cyclical parts of the market that had run up into the election to see a substantial earnings bounce here without that support.”

Reflation Bets Are Being Unwound as Traders Reel From U.S. Vote

© Bloomberg S&P 500 futures, 10-year yields swing as election count continues

Futures on the S&P 500 Index swung from losses to gains during the early U.S. morning. Prices recovered from the dive they took earlier when President Donald Trump falsely claimed victory and threatened to ask the Supreme Court to intervene in the election.

With millions of votes in battleground states still being counted, and close contests in five key states, the presidential outcome may not be decided for days, or longer. It’s clear that the election is turning out to be messier and more drawn-out than Wall Street had hoped.

Elsewhere, the dollar erased earlier gains against many of its major peers, while gold slipped. In Asia, Alibaba Group Holding Ltd. tumbled 7.5% in Hong Kong after China halted the initial public offering of Ant Group Co., in which Alibaba owns about a one-third stake.

Follow along here for our real-time news updates and analysis.

Read more on the election and markets

These are some key events coming up:

Federal Reserve policy decision on Thursday.The key U.S. non-farm payrolls report is due Friday.Earnings are due this week from companies including Bristol-Myers Squibb Co., AstraZeneca Plc and Nintendo Co. on Thursday; Macquarie Group Ltd. and Toyota Motor Corp. are set for on Friday.

These are some of the main moves in global financial markets:

Stocks
Futures on the S&P 500 Index gained 1.9% to 3,426 as of 8:28 a.m. New York time, the highest in more than a week on the largest rise in eight weeks.
Nasdaq 100 Index futures jumped 4% to 11,717.75, the highest in almost three weeks on the biggest surge in almost seven months.

Currencies

The Bloomberg Dollar Spot Index decreased 0.2% to 1,164.30, the lowest in more than a week.
The euro gained 0.1% to $1.1725, the strongest in a week.
The Japanese yen appreciated 0.2% to 104.32 per dollar, the strongest in eight months.

Bonds

The yield on two-year Treasuries declined one basis point to 0.16%, the biggest fall in more than three weeks.
The yield on 10-year Treasuries declined 10 basis points to 0.79%, the lowest in a week on the largest decrease in almost seven months.
The yield on 30-year Treasuries declined 13 basis points to 1.55%, the lowest in a week on the biggest decrease in almost seven months.
Germany’s 10-year yield fell one basis point to -0.63%.

Commodities

West Texas Intermediate crude climbed 2.5% to $38.62 a barrel, the highest in more than a week.
Gold weakened 0.1% to $1,907.90 an ounce.

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