Dow futures rose in overnight trading on Monday, putting the index on track to extend its rally from the regular session.
Dow futures rose about 185 points. The S&P 500 futures gained 0.5% and the Nasdaq 100 futures rose 0.6%.
On Monday, the Dow Jones industrial average garnered more than 300 points on investors’ optimism about the economic recovery from the pandemic. At the maximum level of the session, the average of 30 shares jumped 650 points to reach an intraday record.
The increase was fueled in part by the Senate’s adoption of $ 1.9 trillion in economic aid and the stimulus bill on Saturday, which will include another round of stimulus checks. Banks, airlines, cruise lines and retailers have grown in the hope of a strong economic decline.
In addition, the Centers for Disease Control and Prevention said Monday that people who have been completely vaccinated against Covid-19 can be found safely indoors without masks. The announcement came after the United States reached 3 million vaccinations over the weekend.
Meanwhile, technology stocks continued their recent weakness, as the Nasdaq Composite fell 2.4%. The technological reference base closed by more than 10% below the maximum value on 12 February, reaching the correction territory.
The S&P 500 also ended the day down about 0.5%, driven by shares of Tesla, PayPal, Etsy and Advanced Micro Devices.
High-rise names have been pressured by rising interest rates recently. The yield on the US Treasury for 10 years rose on Monday to about 1.6%. However, hedge fund manager David Tepper has said that the recent sharp rise in rates is likely over and that it is difficult to be a stockholder right now.
“Monday’s initial rally was primarily due to weekend news that President Biden’s aid package had passed,” Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. “Ultimately, however, equity investors are now obsessed with bond yields keeping pressure on the Nasdaq and S&P 500 technology sectors all day. close to closing today, the pressure on technology stocks has finally intensified to the end. ”
“However, most of the stock market had a pleasant day, as low-capitalization stocks and several reopening sectors made healthy gains,” Paulsen added.
The Russell 2000 small capital benchmark gained about 0.5% a month.