Politics

Stocks jump on stimulus vote and J&J vaccine news, with Dow up 600 points

Stocks rose across the board Monday on Wall Street as traders welcomed a move lower in long-term interest rates in the bond market. Investors also watched Washington, D.C., as a big economic stimulus bill moved to the Senate.

The S&P 500 added about 2.4% on Monday. More than 95% of the stocks in the index were higher Monday, led by energy and technology companies. The Dow Jones Industrial Average was up a little over 600 points, or nearly 2%, to 31,535, and the tech-heavy Nasdaq composite rose 3%.

Much of the focus on Wall Street was on the bond market, with the yield on the 10-year Treasury note falling to 1.45% after going as high as 1.5% last week, the highest level in more than a year. Higher interest rates can slow the economy and discourage borrowing.

Bond yields, which influence interest rates on mortgages and many other kinds of loans, have been steadily climbing much of 2021 so far as investors bet that vaccination efforts and more government stimulus will lead to strong economic growth later this year. However, along with strong economic growth comes concerns of inflation.

A handful of high-level officials with the Federal Reserve will make speeches this week that are expected to give investors additional information on how concerned the nation’s central banker are about the economy and threat of inflation. Lael Brainard, an advocate for looser monetary policies to stoke job growth, will give a monetary policy speech on Tuesday and Fed Chair Jerome Powell will give a speech on Thursday.


Yellen: Job market still “in a deep hole”

08:08

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 is expected to include yet another round of one-time $1,400 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 the pandemic.

The combination of the vaccine rollout, stimulus payments and elevated consumer savings as a result of the fiscal stimulus could drive economic recovery, according to Goldman Sachs analysts in a March 1 research note.

Johnson & Johnson’s stock price rose 1.5% after the U.S. 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 and Pfizer.

Energy companies made some of the biggest gains Monday. Exxon Mobil rose 3.7% and Occidental Petroleum rose 3.9%. Industrial companies, including airlines beaten down by the coronavirus pandemic, also helped boost the broader market. United Airlines rose 1.2%.

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.

Checkout latest world news below links :
World News || Latest News || U.S. News

Help us to become independent in PANDEMIC COVID-19. Contribute to diligent Authors.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button
SoundCloud To Mp3