U.S. equity markets ended mixed Monday, with the Nasadq entering a correction, after the Senate passed President Biden’s $1.9 trillion COVID-19 relief package and investors turned their attention to the pace of the economic recovery.
|I:DJI||DOW JONES AVERAGES||33934.29||+112.99||+0.33%|
The Dow gained 305 points or 0.97% as economically sensitive cyclical sectors like transportation and financials helped drive the gains. The blue-chip index briefly topped 32,000 for the first time before sliding back below the level.
The S&P 500 and the Nasdaq Composite, meanwhile, lost 0.54% and 2.41%, respectively.
|I:COMP||NASDAQ COMPOSITE INDEX||13782.182136||-4.09||-0.03%|
In a 50-49 vote, the Senate passed its own version of Biden’s $1.9 trillion bill, which limits $1,400 checks to those making $75,000 a year or less and strips out a $15 minimum wage, among other things. The U.S. House of Representatives will vote on the measure as early as Tuesday.
The bill’s passage through the upper chamber reignited worries of inflation, sending the 10-year Treasury yield briefly above 1.60% before pulling back. The recent rise in the 10-year yield has rattled investors as it is now higher than the S&P 500's 1.5% dividend yield.
In stocks, mega-cap technology shares fell as rising bond yields threatened their growth outlooks.
|QQQ||INVESCO QQQ NASDAQ 100||335.92||-0.49||-0.15%|
Elsewhere, Microsoft Corp. shares were in focus after a cyberattack on its Exchange email software, believed to be carried out by Chinese hackers, infected tens of thousands of customers.
Walt Disney Co. will reopen its California theme park at reduced capacity beginning April 1. The stock hit a fresh record.
|DIS||THE WALT DISNEY CO.||181.32||-1.45||-0.79%|
Meanwhile, GameStop Corp. shares rallied after Chewy founder Ryan Cohen has been tasked with leading the company's e-commerce shift.
In mergers and acquisitions, General Electric Co. is nearing a deal worth more than $30 billion deal to combine its aircraft-leasing business with Ireland’s Aercap Holdings NV, according to The Wall Street Journal, citing people familiar with the matter.
|GE||GENERAL ELECTRIC CO.||13.10||+0.04||+0.33%|
Apollo Global Management agreed to retirement services company Athene Holdings for $11 billion in stock. The deal, which pays a 17% premium to Athene’s closing price on Friday, gives shareholders 1.149 Apollo shares for each Athene share they own.
|ATH||ATHENE HOLDING LTD||55.26||-0.10||-0.18%|
In commodities, Brent crude oil reached $71.38 per barrel overnight after Yemen’s Houthis launched a drone attack on Saudi Arabia’s oil facilities. Prices have since pulled back with Brent losing $1.12 at $68.24 per barrel. West Texas Intermediate crude oil, meanwhile, slid $1.04 to $65.05 per barrel.
|USO||UNITED STATES OIL FUND L.P.||42.18||-0.54||-1.26%|
Elsewhere in the commodities complex, gold fell $20.30 to $1,678.20 per ounce.
Overseas markets were mixed.
In Europe, Germany’s DAX 30 climbed 3.31%, France’s CAC 40 gained 2.08% and Britain’s FTSE 100 advanced 1.34%.
Asian markets, meanwhile, were under pressure with China’s Shanghai Composite index declining 2.3%, Hong Kong’s Hang Seng index falling 1.92% and Japan’s Nikkei 225 losing 0.42%