Dow futures soared in Monday morning trading, putting the index on track to extend its hike since the regular session.
Dow futures were up about 150 points. S&P 500 futures gained 0.5% and Nasdaq 100 futures rose 0.6%.
On Monday, the Dow Jones Industrial Average rose more than 300 points with investor optimism about the economic recovery from the pandemic. At its session high, the average of 30 stocks jumped 650 points to break an intraday record.
The optimism was fueled in part by the Senate’s approval of a $ 1.9 trillion economic relief and a stimulus bill on Saturday, which is expected to include another round of stimulus checks. Banks, airlines, cruise lines and retailers have all risen in the hope of a strong economic recovery.
In addition, the Centers for Disease Control and Prevention said on Monday that people who have been fully vaccinated against Covid-19 can safely meet indoors, without masks. The announcement came after the United States reached 3 million vaccinations over the weekend.
Meanwhile, technology stocks continued their recent weakness, with the Nasdaq Composite falling 2.4%. The high-tech benchmark closed more than 10% below its closing high in February, 12, falling into correction territory.
The S&P 500 also ended the day with a drop of around 0.5%, dragged down by the shares of Tesla, PayPal, Etsy and Advanced Micro Devices.
High-growth names have been under pressure from rising interest rates recently. The US Treasury’s 10-year yield was around 1.6% on Monday. However, hedge fund manager David Tepper said the recent sharp rise in rates has probably ended and it is difficult to be pessimistic about stocks now.
The “initial recovery was mainly due to news over the weekend that President Biden’s aid package had been approved,” Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. “Ultimately, however, equity investors are currently obsessed with bond yields, keeping the Nasdaq and S&P 500 technology sector under pressure all day. 6% close to today’s close, ended up pressuring the technology stocks intensified at the close.
“However, most of the stock market had a good day, as small cap stocks and several reopening sectors recorded healthy gains,” added Paulsen.
The small cap Russell 2000 benchmark gained about 0.5% on Monday.