Stocks rise, bonds fall ahead of Senate tax vote

Expectations of a Senate vote to extend tax cuts is setting the stage for gains in the stock market. Treasury bonds are falling to their lowest levels since June.

Economists expect the tax cut to boost economic growth and increase the size of the budget deficit.

World stock markets are rising. Blue chips in Europe are up 0.4 percent. China's benchmark Shanghai Composite Index rose 2.8 percent after Chinese authorities kept interest rates stable.

There are no major economic reports or corporate earnings announcements scheduled for Monday.

In pre-market trading, the Dow Jones industrial average is up 34, or 0.3 percent, to 11,442. S&P 500 futures are up 4, or 0.3 percent, to 1,240. Nasdaq 100 futures are up 5, or 0.2 percent, to 2,220.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) — Expectations of a Senate vote to extend tax cuts is setting the stage for gains in the stock market. Treasury bonds are falling to their lowest levels since June.

Economists expect the tax cut to boost economic growth and increase the size of the budget deficit.

World stock markets are rising. Blue chips in Europe are up 0.4 percent. China's benchmark Shanghai Composite Index rose 2.8 percent after Chinese authorities kept interest rates stable.

There are no major economic reports or corporate earnings announcements scheduled for Monday.

In pre-market trading, the Dow Jones industrial average is up 34, or 0.3 percent, to 11,442. S&P 500 futures are up 4, or 0.3 percent, to 1,240. Nasdaq 100 futures are up 5, or 0.2 percent, to 2,220.