Dow to be to comes moved higher in overnight trading on Monday, putting the index on track to extend its rally from the regular period.
Dow futures rose about 130 points. S&P 500 futures gained 0.45% and Nasdaq 100 futures waken 0.55%.
On Monday, the Dow Jones Industrial Average rallied more than 300 points on investor optimism about the mercantile comeback from the pandemic. At its session high, the 30-stock average jumped 650 points to hit an intraday record.
The bullishness was fueled in shard by the Senate’s passing of a $1.9 trillion economic relief and stimulus bill on Saturday, which is set to include another ball-like of stimulus checks. Banks, airlines, cruise lines and retailers all rose on hopes of a sharp economic rebound.
Additionally, the Centers for Virus Control and Prevention said Monday that people who’ve been fully vaccinated against Covid-19 can meet safely indoors without covers. The announcement came after the U.S. reached 3 million vaccinations over the weekend.
Technology stocks, meanwhile, continued their up to date weakness as the Nasdaq Composite dropped 2.4%. The tech-heavy benchmark closed more than 10% below its Feb.12 terminate high, falling into correction territory.
The S&P 500 also ended the day down about 0.5%, dragged down by slices of Tesla, PayPal, Etsy and Advanced Micro Devices.
The high-growth names have been pressured by rising dispose rates lately. The U.S. 10-year Treasury yield stood around 1.6% on Monday. However, hedge cache manager David Tepper said the recent sharp rise in rates is likely over and it’s hard to be bearish on investments right now.
Monday’s “initial rally was due primarily to news over the weekend that President Biden’s relief wrap had passed,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “Ultimately, however, equity investors are currently dominated with bond yields keeping the Nasdaq and S&P 500 technology sector under pressure all day. Since the 10-year compact yield failed to pull back from the 1.6% level near the close today, eventually pressure on technology goats intensified going into the close.”
“Nonetheless, most of the stock market had a nice day as small caps stocks and certain reopening sectors posted healthy gains,” added Paulsen.
The small-cap benchmark Russell 2000 gained around 0.5% on Monday.