US stocks climb as stimulus nears final vote and investors buy the dip in tech
- US equities rose on Monday as the Senate's approval of a $1.9 trillion
stimuluspackage revived the value rotation.
- Tech stocks and growth names rebounded as investors rushed to buy the dip.
- Oil erased early gains and slid after a Saudi Arabian crude terminal was attacked in a Sunday drone strike.
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US stocks gained on Monday as the Senate's approval of a massive new relief package boosted hopes for a swift economic recovery.
Senators voted along party lines on Saturday to push a $1.9 trillion stimulus plan closer to President Joe Biden's desk. The package is expected to receive a final House vote on Tuesday, giving Democrats time to enact a supplement to federal unemployment benefits before the current boost expires on March 14. The package also includes $1,400 direct payments, aid for state and local governments, and funding for vaccine distribution.
The package is widely expected to accelerate economic growth and lift inflation. The Senate vote's initially renewed the value rotation and led tech and growth stocks to decline. Investors quickly bought the decline, leading all three major indices to rise through the morning.
Here's where US indexes stood at 11 a.m. ET market on Monday:
- S&P 500: 3,875.52, up 0.87%
- Dow Jones industrial average: 31,963.30, up 1.48% (467 points)
- Nasdaq composite: 12,959.43, up 0.3%
The choppy session followed a broad market upswing to close out last week. Stocks rose on Friday as stronger-than-expected February payroll additions led investors to buy the dip in tech stocks. Government data also showed the unemployment rate falling to 6.2%, though other gauges of labor-market health remain at worrying highs.
General Electric gained after The Wall Street Journal reported the company is nearing a deal to merge its jet-leasing arm with AerCap Holdings. The agreement, should it go through, would combine the world's two largest aircraft financiers.
Bitcoin traded just below $51,000, hovering in an increasingly narrow trading range as investors look for the next driver to boost cryptocurrencies. The token has failed to hold the $52,000 support level since falling from record highs in late February.
Treasurys broadly tumbled, bringing the 10-year yield to an intraday high of 1.613%. The US dollar strengthened against a basket of Group-of-20 currencies.
Spot gold fell as much as 0.93%, to $1,684.72 per ounce, at intraday lows. The precious metal hadn't traded below the $1,700 support level since June.
Oil prices erased early gains and dipped after a Saudi Arabian crude terminal was attacked by a drone on Sunday. West Texas Intermediate crude sank as much as 1%, to $65.43 per barrel. Brent crude, oil's international benchmark, fell 0.97%, to $68.69 per barrel, at intraday lows.
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