The stock index benchmarks traded higher on Monday morning, with technology-related stocks under pressure, as yields on government bonds increased their rise after Senate approval of a COVID- relief package. 19 from $ 1.9 trillion. The Dow Jones Industrial Average [: DJIA] was trading up to 121 points, or 0.4%, at 31,606, the S&P 500 SPX index,
rose 0.1% in 3,842, while the Nasdaq Composite Index COMP,
was down 0.2% in 12,899. Expectations that aggressive fiscal spending, coupled with a rapidly reopening economy as vaccine launches continue, have fueled expectations of at least an increase in inflation in the short term. This, in turn, contributed to an increase in bond yields that helped fuel growth-oriented stock rotation with high valuations toward stocks that were left behind in the post-COVID stock market recovery. In corporate news, shares of AMC Entertainment Holdings Inc. AMC,
skyrocketed with the jump in meme stocks in the fall of last month after Wedbush analyst Michael Pachter doubled his target price before the company’s earnings report, citing growing optimism about the post-pandemic environment. Pachter increased his target for the stock from $ 2.50 to $ 5.00, but that target was 38% below Friday’s closing price of $ 8.05. Shares of AMC and GameStop Corp. GME,
have been the focus of retail investors and short sellers recently. GameStop chose Chewy co-founder Ryan Cohen to lead the change in e-commerce, according to reports.
