After news broke Sunday afternoon that former Treasury Secretary Larry Summers was withdrawing his name for consideration as the next chairman of the Federal Reserve, stocks and bonds got a nice boost when futures markets re-opened for the week in the evening.

Many consider Summers – who was the frontrunner for the position – to be a more "hawkish" candidate than Fed vice chair Janet Yellen, implying that his appointment to the post would be less market-friendly, because perhaps he would be quicker to withdraw Fed stimulus than a "dovish" candidate like Yellen.

In the past few hours, however, stock and bond markets have taken a sharp turn lower, and the "Larry Summers" rally that began Sunday evening is already evaporating.

Right now, S&P 500 futures are up only 0.5%, trading around 1690, after hitting a high of 1703.75 (up 1.3%) last night.

The yield on the 10-year U.S. Treasury note, meanwhile, has risen 9 basis points from its low of 2.78% this morning to current levels at 2.87% as futures continue heading lower.

The chart below shows S&P 500 futures.

The next chart shows 10-year Treasury futures, which follow a similar pattern.

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