A woman passes the New York Stock Exchange (NYSE) on Wall Street on January 12, 2021 in New York.
HECTOR ANGELICA WEISS AFP | Getty Images
US futures rose on Sunday in overnight trading, indicating a strong opening on the first trading day of March.
Dow futures rose 135 points. The S&P 500 futures gained 0.6% and the Nasdaq 100 futures rose 0.7%.
Stimulating sentiment on the vaccine front, the Centers for Disease Control and Prevention advisory group voted unanimously Sunday to recommend the use of Johnson & Johnson’s Covid-19 one-shot vaccine for people 18 and older. The company expects to initially deliver 4 million doses.
Last week, stocks were pressured by rising interest rates. Higher interest rates can threaten the dominance of equities, as bonds are seen as less risky. The 10-year benchmark yield reached 1.6% on Thursday, but retreated to about 1.41% on Friday.
Treasury 10-year futures contracts increased in overnight transactions, which means that yields will fall on Monday. Prices go back to yields.
The Dow Jones industrial average and the S&P 500 lost 1.7% and 2.5%, respectively, between Monday and Friday.
The technology-intensive Nasdaq Composite fell more than 4 percent a week, suffering its worst sell-off since Thursday in October. Technology companies rely on the ability to borrow money at a low rate to invest in future growth.
“Bond market volatility has risen to an all-time high since April and until there is some calm and a new peak in yields, this is the focus for investors,” said Jim Paulsen, the Group’s chief investment strategist. Leuthold, for CNBC.
The major averages rose for February, supported by a strong earnings season, positive news about the vaccine launch and hope for the package of antheric stimuli.
The House early Saturday passed a $ 1.9 trillion Covid bailout bill, the U.S. bailout law of 2021. The Senate will now consider the legislation.
Dow gained 3.15% for the third positive month out of four in February. The S&P 500 gained 2.61%, and the Nasdaq Composite gained nearly 1% for its fourth positive month in a row.
The last reading in February for the index of purchasing managers from the American manufacture Markit for February appears on Monday at 9:45 ET. Economists surveyed by the Dow Jones expect a reading of 58.5, the same as in December of 58.5.
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