Dow futures rose during evening trade on Monday, putting the index on the right track to extend its rally from the regular session.
Dow Jones futures rose nearly 150 points. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.6%.
On Monday, the Dow Jones Industrial Average rose more than 300 points as investors were optimistic about an economic return from the pandemic. At the session high, the average of 30 stocks jumped 650 points to set an intraday record.
The ascent was partly driven by Senate approval of A. $ 1.9 trillion to ease the economy and stimulus bill on SaturdayWhich will include another round of stimulus checks. Banks, airlines, cruise lines and retailers rose on hopes of a sharp economic recovery.
Additionally, the Centers for Disease Control and Prevention said Monday that people who have been fully vaccinated against Covid-19 can meet safely indoors without masks. The announcement came after the United States reached 3 million vaccines over the weekend.
Meanwhile, technology stocks continued their recent weakness as the Nasdaq Composite Index fell 2.4%. The major technology heavy index closed more than 10% below its February 12th closing high, and fell into the correction zone.
High-growth names have been under pressure due to recent interest rate hikes. The yield on the 10-year US Treasury was roughly 1.6% on Monday. However, Hedge fund manager David Tipper said the recent sharp rise in interest rates was likely over And it’s hard to be bearish on stocks at the moment.
“The initial rally on Monday was mainly due to the news released over the weekend that Biden’s relief package has passed,” Jim Poulsen, chief investment analyst at Leuthold Group, told CNBC. Ultimately, however, equity investors are currently obsessed with bond yields keeping the tech sector on the Nasdaq and S&P 500 under pressure throughout the day. As the 10-year bond yield failed to retreat from the 1.6% level near the close today, Ultimately the pressure on technology stocks intensified as the close approached. ”
“Nevertheless, most of the equity markets had a wonderful day, with small cap stocks and many of the reopened sectors reporting good gains,” Poulsen added.
The Russell 2000 Small Capital Index rose 0.5% on Monday.