Dow, S&P charge to record highs as bond yields ease ahead of Fed meeting

Boeing Co. snapped its four-day winning streak

U.S. equity markets rallied Monday as bond yields fell ahead of the Federal Reserve’s two-day meeting.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 33815.9 -321.41 -0.94%
SP500 S&P 500 4134.98 -38.44 -0.92%
I:COMP NASDAQ COMPOSITE INDEX 13818.412584 -131.81 -0.94%

The Dow Jones Industrial Average rose 173 points, or 0.53%, while the S&P 500 and the Nasdaq Composite advanced 0.64% and 1.05%, respectively. Both the Dow and the S&P 500 closed at a record high in what was a choppy session.

Outperformance from the Nasdaq occurred as the 10-year yield declined by 2.5 basis points to 1.609%. The benchmark yield, however, remains above the S&P 500's 1.49% dividend yield.

Investors will be paying close attention to Wednesday’s Fed decision and will be on the lookout for any commentary surrounding how the central bank could respond should the unprecedented amount of fiscal and monetary stimulus bring back inflation that has been missing since the 2008 financial crisis.

Ticker Security Last Change Change %
BA THE BOEING CO. 234.43 -1.57 -0.67%

Looking at stocks, Boeing Co. snapped its four-day winning streak, which boosted shares by 20%.

Ticker Security Last Change Change %
AAL AMERICAN AIRLINES GROUP, INC. 20.07 -0.94 -4.47%
JBLU JETBLUE AIRWAYS 19.85 -0.06 -0.30%
DAL DELTA AIR LINES INC. 44.65 -1.05 -2.30%

Airlines were in focus after Transportation Security Administration data showed officers screened 1.36 million passengers at U.S. airports on Friday, the highest single-day total since COVID-19 lockdowns began on March 15, 2020. Separately, CEOs from the majors, including American Airlines Doug Parker, gave optimistic remarks on bookings at JPMorgan's Industrials Conference.

Ticker Security Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 9.99 +0.21 +2.15%
GME GAMESTOP 151.17 -7.34 -4.63%

Elsewhere, AMC Entertainment Holdings Inc. will begin reopening theaters in Los Angeles beginning on Monday. The company hopes to have all 56 of its California locations by Friday. GameStop, also saw continued volatility, triggering at least one trading halt on the New York Stock Exchange.

Ticker Security Last Change Change %
DKNG DRAFTKINGS 57.17 -1.61 -2.74%

Meanwhile, DraftKings Inc. announced plans for a $1 billion convertible note offering. The sports-betting platform plans to use the proceeds for general corporate purposes, including mergers and acquisitions and products or technology investments.

In commodities, West Texas Intermediate crude oil fell 22 cents to $65.39 per barrel and gold rallied $9.40 to $1,728.90 an ounce.

Overseas markets were mixed.

Germany's DAX 30 paced the decline in Europe, trading down 0.28%, while France’s CAC 40 and Britain's FTSE 100 both lost 0.17%.

In Asia, China’s Shanghai Composite declined 0.96%, Japan’s Nikkei 225 added 0.17% and Hong Kong’s Hang Seng index rose 0.33%.