(Reuters) – The S&P 500 surged on Monday and was headed for its biggest one-day gain since June as bond markets calmed after a month-long selloff, while developments on COVID-19 vaccines and fiscal stimulus bolstered expectations of a swift economic recovery.FILE PHOTO: The Fearless Girl statue is seen outside the New York Stock Exchange (NYSE) in New York, U.S., February 12, 2021. REUTERS/Brendan McDermid
Johnson & Johnson rose almost 1% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend.
President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate.
U.S. bond yields eased after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The U.S. 10-year treasury yield dipped to 1.453% after hitting a one-year high of 1.614%. [US/]
“The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment,” said Keith Buchanan, portfolio manager at Globalt in Atlanta.
Data showed U.S. manufacturing activity increased to a three-year high in February amid an acceleration in new orders.
All 11 S&P 500 sectors rallied more than 1%, led by financials and industrials, both up over 3%.Slideshow ( 2 images )
Apple Inc, Microsoft Corp, Facebook Inc and Amazon.com Inc bounced back after a selloff last week in tech stocks.
The S&P 500’s rebound from its 50-day moving average, touched after Friday’s decline, is a bullish sign that is adding to investors’ enthusiasm, said CFRA Research Chief Investment Strategist Sam Stovall.
“It’s a positive signal, at least in the near term, that the recent weakness has dissipated,” Stovall said.
In afternoon trading, the Dow Jones Industrial Average was up 2.3% at 31,643.25 points, while the S&P 500 gained 2.55% to 3,908.39.
The Nasdaq Composite added 2.8% to 13,561.22.
Shares of Delta Air Lines Inc and American Airlines each gained about 1%.
Boeing Co jumped 5.9% after United Airlines Holdings Inc ordered 25 new 737 MAX aircraft and moved up the delivery of others as it prepares to replace aging jets and meet expected post-pandemic growth in demand.
Warren Buffett’s enthusiasm for the future of the United States and his company Berkshire Hathaway Inc has not been dimmed by the coronavirus pandemic, according to his annual letter to investors. Berkshire’s shares rose 3.8%.
Perrigo Co Plc jumped 7.5% as the consumer healthcare products company said it would sell its underperforming generic drugs business for $1.55 billion.
Advancing issues outnumbered declining ones on the NYSE by a 4.50-to-1 ratio; on Nasdaq, a 4.60-to-1 ratio favored advancers.
The S&P 500 posted 47 new 52-week highs and no new lows; the Nasdaq Composite recorded 172 new highs and 16 new lows.
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