US Stocks Open Higher Monday 03/01 09:25
Stocks opened broadly higher Monday, helped by easing bond yields, which
have been a point of concern for a growing number of investors in recent weeks.
Traders were also watching Washington as a big economic stimulus bill moved to
(AP) -- Stocks opened broadly higher Monday, helped by easing bond yields,
which have been a point of concern for a growing number of investors in recent
weeks. Traders were also watching Washington as a big economic stimulus bill
moved to the Senate.
The S&P 500 added 1.5% as of 9:50 a.m. Eastern. The Dow Jones Industrial
Average was up 1.6% and the Nasdaq Composite rose 1.3%. More than 95% of the
stocks in the index were higher, led by energy companies and airlines.
Much of the focus on Wall Street is on the bond market. The yield of the
10-year Treasury note was down to 1.43% after briefly hitting the
psychologically important 1.5% mark late last week. Bond yields have been
steadily climbing much of the year, as investors have bet that coronavirus
vaccination efforts and additional government stimulus will lead to strong
economic growth this year. However, along with strong economic growth comes
concerns of inflation.
A handful high-level officials with the Federal Reserve will make speeches
this week, which will give investors additional information on how concerned
the nation's central bank is about the economy and inflation. Lael Brainard, an
advocate for looser monetary policies, will give a speech on Tuesday and Fed
Chair Jerome Powell will give a speech on Thursday.
The House of Representatives approved Biden's $1.9 trillion pandemic relief
bill on Friday and it now goes to the Senate for approval. The bill infuses
cash across the struggling economy to individuals, businesses, schools, states
and cities battered by COVID-19.
The stimulus bill would include yet another round of one-time payments to
most Americans, including an expansion of other refundable tax credits like the
child tax credit, and additional aid to state and local governments to combat
Johnson & Johnson rose 1.5% after the Food and Drug Administration gave
approval for the company's own coronavirus vaccine, one that does not require
extensive refrigeration like the ones made by Moderna or Pfizer.
Investors will get several big economic reports this week, including
February's jobs report on Friday. On Monday a report on manufacturing came in
better than expectations, and new orders also came in better than expected.