Stocks are rising across the board on Wall Street, with traders hailing a drop in long-term interest rates in the bond market. Investors were also watching Washington as a major economic stimulus bill was sent to the Senate.
The S&P 500 added about 2.5% as of 2 pm East. More than 95% of the index’s shares were up on Monday, led by energy and technology companies. The Dow Jones Industrial Average was up about 675 points, or almost 2.2%, to 31,606 and the Nasdaq Composite was up 2.6%.
Much of the focus on Wall Street is in the bond market, with the yield on the 10-year Treasury note falling to 1.43%, after rising to 1.5% last week, the highest level in more than a year. . Higher interest rates can slow the economy and discourage indebtedness.
Bond yields, which influence interest rates on mortgages and many other types of loans, have been steadily rising for most of the year, as investors bet that vaccination efforts and more government stimulus will lead to strong growth economic this year. However, along with strong economic growth come concerns about inflation.
A handful of senior Federal Reserve officials will make speeches this week that should give investors additional information about the country’s central bank’s concern about the economy and inflation. Lael Brainard, a supporter of more flexible monetary policies, will deliver a speech on monetary policy on Tuesday and Fed chairman Jerome Powell will deliver a speech on Thursday.
The House of Representatives approved Biden’s $ 1.9 trillion pandemic relief bill on Friday and is now going to the Senate for approval. The project infuses money across the struggling economy for individuals, businesses, schools, states and cities hit by COVID-19.
The stimulus project is expected to include another round of one-time payments of $ 1,400 for most Americans, including an expansion of other reimbursable tax credits, such as the tax credit for children, and additional help for state and local governments to combat the pandemic.
Johnson & Johnson’s stock price rose 1.5% after the US Food and Drug Administration approved the company’s own coronavirus vaccine, which does not require extensive refrigeration like those made by Moderna and Pfizer.
Energy companies have made some of the biggest gains. Exxon Mobil was up 5% and Occidental Petroleum was up 4.9%. Industrial companies, including airlines affected by the virus pandemic, have also helped boost the broader market. United Airlines grew 3.4%.
Investors will receive several important economic reports this week, including the February jobs report on Friday. On Monday, a manufacturing report came out better than expected, and new orders also came out better than expected.