Indexes Rise as Techs Rally
U.S. stocks jumped on Monday led by technology shares as investors flocked back into growth names amid declining bond yields.
The Dow Jones Industrials jumped 103.23 points to close Monday at 32,731.20
The S&P 500 progressed 27.49 points 3,940.91, breaking a two-day losing streak
The NASDAQ Composite climbed 162.31 points, or 1.2%, to 13,377.54.
Shares of Tesla added 2.3% as rates fell and as Cathie Wood’s Ark Invest put out a new price target on the stock which calls for it to quadruple in four years. Apple, Microsoft and Netflix all gained at least 2%, while Amazon and Facebook climbed more than 1% each.
Industrials got a boost after the New York Times reported that President Joe Biden is eyeing an infrastructure deal with as much as $3 trillion spending to boost the economy. Most Wall Street firms including Goldman Sachs were expecting around $2 trillion on infrastructure spending. Shares of Caterpillar traded into the green following the news and closed the session 0.3% higher.
Optimism about the markets and the path of the U.S. economy has been growing as vaccines are rolling out across the country, with the pace of Americans getting shots climbing in recent weeks. Several states are seeing an increase in COVID-19 cases, however.
U.S. trial data released Monday showed the COVID vaccine developed by AstraZeneca and the University of Oxford is 79% effective in preventing symptomatic illness and 100% effective against severe disease and hospitalization.
Prices for 10-Year Treasurys spiked, dropping yields to 1.69% from Friday’s 1.73%. Treasury prices and yields move in opposite directions.
Oil prices picked up five cents to $61.47 U.S. a barrel.
Gold prices slumped $3.20 to $1,738.50.