U.S. stocks jumped sharply on Monday in a broad-based rally as stocks tied to the economic reopening jumped on vaccine optimism, while tech names rebounded from steep losses last week.
The Dow Jones Industrials surged 603.14 points, or 2%, to greet the closing bell at 31,535.51, led by Boeing which climbed 6.8% and put the plane maker on pace for its best day since Nov. 9.
The S&P 500 reclaimed 90.67 points, or 2.4%, to 3,901.82. Fewer than 40 stocks in the S&P 500 posted losses on Monday, the first trading session of March. At the Big Board, advancers outnumbered decliners by four-to-one. Energy and financials, which are popular cyclical plays, jumped 3% amid optimism on vaccines.
The NASDAQ Composite spiked 396.48 points, or 3%, to 13,588.83. Meanwhile, high-growth tech shares outperformed as rates stabilized. Apple popped 5.4% and Tesla rose 6.4%.
Boosting sentiment on the vaccine front, the Centers for Disease Control and Prevention advisory panel voted unanimously Sunday to recommend the use of Johnson & Johnson’s one-shot COVID-19 vaccine for people 18 years of age and older. The company expects to ship four millions doses initially.
Last week, the blue-chip Dow 1.7%, and the S&P 500 lost 2.5%. The technology-heavy NASDAQ dropped more than 4% during the same period, after suffering its worst one-day selloff since October on Thursday. Technology companies rely on being able to borrow money for a low rate in order to invest in future growth.
The major averages rose for the month of February, bolstered by a strong earnings season, positive news on the vaccine rollout and hopes of another stimulus package.
The Dow gained 3.2% for its third positive month in four in February. The S&P 500 gained 2.6% and the NASDAQ gained nearly 1% for its fourth positive month in a row.
On the stimulus front, the House of Representatives passed a $1.9-trillion COVID relief bill, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the legislation.
Prices for 10-Year Treasurys dropped a bit, boosting yields to 1.44% from Friday’s 1.41%. Treasury prices and yields move in opposite directions.
Oil prices shied away 12 cents to $61.38 U.S. a barrel.
Gold prices jumped $1.90 to $1,730.70
