By Anna Hirtenstein

U.S. stock futures climbed ahead of a slew of earnings releases and testimony by Janet Yellen in which she is expected to support higher coronavirus relief spending.

Futures tied to the S&P 500 rose 0.6%, pointing to a rally after the opening bell. Those linked to the Nasdaq-100 added 0.9%, suggesting gains in tech stocks.

Earnings season kicks into high gear Tuesday, with Goldman Sachs and Bank of America scheduled to release their results before markets open. Netflix is expected to report after hours.

Ms. Yellen is scheduled to speak before the Senate Finance Committee at 10 a.m. ET, which will vote on her nomination for Treasury Secretary. According to a copy of her prepared remarks, she plans to tell lawmakers that the U.S. risks a longer, more painful recession unless Congress approves more aid, and to encourage them to "act big" to shore up the recovery.

President-elect Joe Biden unveiled a plan for a $1.9 trillion fiscal stimulus package last week, which would include direct payments of $1,400 to most households and spending on vaccine distribution. Passing it through Congress is one of the first major tests for the incoming leader, who will be inaugurated Wednesday.

Ms. Yellen will be the "holder of the keys of unprecedented spending," said Ludovic Subran, chief economist at Allianz. "It will be reassuring for people to see she's very pragmatic in the way that she addresses the crisis, similarly to how she was in her role at the Fed."

Stock markets have begun the week on an optimistic note, as accelerated Covid-19 vaccine rollouts begin to offset concerns about the spread of the virus.

Overseas, the pan-continental Stoxx Europe 600 rose 0.2%. Jeep-owner Stellantis, the recently combined business of Fiat Chrysler and PSA Group, gained close to 5%, extending Monday's pop after it made its debut on French and Italian exchanges. The company's shares on the New York Stock Exchange will start trading Tuesday.

Meanwhile, investors are watching for the results of a vote of confidence in the Italian Senate, which will determine whether Prime Minister Giuseppe Conte is able to continue governing or not.

The muted reaction in Italy's government bonds shows the massive impact of European Central Bank stimulus and its ability to keep markets stable, Mr. Subran said. The yield on the Italian 10-year bond edged down to 0.625% from 0.633% Monday.

"We tend to believe the coalition will reform, we still think it's something that can be saved. But it's also revealed the fragility of the coalition," said Mr. Subran.

In Asia, most major benchmarks rose. Hong Kong's Hang Seng Index advanced 2.5% and Japan's Nikkei 225 index added 1.4%, led by shares of tech and car companies. The Shanghai Composite Index slipped 0.8%.

Chinese real-estate developer China Evergrande surged nearly 16% after it said it has arranged funds for early repayment of 16 billion Hong Kong dollars of bonds, equivalent to $2.1 billion, easing concerns over its financial health.

In U.S. bond markets, the yield on the benchmark 10-year Treasury note rose to 1.110% from 1.097% Friday, with the market closed Monday for Martin Luther King Jr. Day.

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com

(END) Dow Jones Newswires

01-19-21 0540ET