By Yasin Ebrahim
Investing.com – The Dow made a roaring start to the new month Monday, as financials and tech stocks racked up gains after the U.S. bond yield spike that rattled markets eased and positive vaccine news stoked hopes for a more solid recovery.
The Dow Jones Industrial Average rose 1.9%, or 603 points. The S&P 500 was up 2.4% and the Nasdaq Composite jumped 3.0%.
Johnson & Johnson (NYSE:JNJ)'s COVID-19 vaccine received approval from the Food and Drug Administration over the weekend, with about 20 million doses expected to be rolled out this month and 100 million by June. The approval provided a boost to the pace of vaccinations across the U.S., stoking expectations for a stronger reopening just as progress continues to be made on the $1.9 trillion stimulus bill.
The $1.9 trillion fiscal package, which includes $1,400 stimulus checks, was passed by the House of Representatives over the weekend. It is destined for a vote in the Senate. The package "will most likely be passed along party lines ... and includes funding for vaccines and medical supplies, an extension of unemployment benefits, a round of $1,400 stimulus checks to individuals, and financial aid to small businesses and state and local governments," Stifel said in a note.
The vaccine optimism and hopes over further stimulus being rolled out sooner rather later triggered a rally in financials with airlines also garnering investor attention.
Financials were also in favor, with Goldman Sachs Group (NYSE:GS), Bank of America (NYSE:BAC) up more than 3%, while Citigroup (NYSE:C) rallied 6% as Jane Fraser took up the reins on Monday.
Wells Fargo (NYSE:WFC) said Citi assets are more valuable as a sum of parts rather than a whole, as there is "significant hidden value and trapped capital," in the business.
United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:NASDAQ:AAL) ending up more than 1%. Boeing (NYSE:BA) rose 6% after United Airlines said it would buy 25 additional Boeing 737 Max planes and take delivery of other orders earlier than previously planned.
Tech, meanwhile, found its footing after a recent wobble as sharp uptick in U.S. bond yields that led to the recent rout in tech steadied.
Apple (NASDAQ:AAPL) led big tech higher, while jump in semiconductor stocks also added gains to the sector. Apple said all its stores have been reopened in the U.S. for the first time since lockdowns began last year.
Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) traded higher on the day.
In other news, stay-at-home stocks also rebounded, with Zoom Video Communications (NASDAQ:ZM) up about 10%. Peloton Interactive (NASDAQ:PTON) and DocuSign (NASDAQ:DOCU) were up sharply.