U.S. equity markets rallied Monday as investors celebrated the approval of a third COVID-19 vaccine and as the U.S. House of Representatives passed a $1.9 trillion relief package. The combination fueled optimism on the economic recovery.
|I:DJI||DOW JONES AVERAGES||33900.99||+223.72||+0.66%|
The Dow Jones Industrial Average gained 603 points, or 1.95%, while the S&P 500 and the Nasdaq Composite gained 2.38% and 3.01%, respectively.
|XLF||FINANCIAL SELECT SECTOR SPDR ETF||35.41||+0.45||+1.27%|
|QQQ||INVESCO QQQ NASDAQ 100||338.38||-2.22||-0.65%|
Technology and financial stocks led the broad gains in U.S. equities.
The gains came as the 10-year yield slipped 1.5 basis points to 1.44%. The benchmark yield last week touched a one-year high of 1.61%, causing jitters among stock-market investors as it topped the S&P 500's dividend yield.
President Biden’s COVID-19 relief package cleared the House in a 219 to 212 vote, mostly along party lines, that saw two Democrats vote against the measure.
The bill, which gives $1,400 checks to most Americans and extends unemployment benefits among other things, has been criticized by Republicans as a “blue state bailout” with only 9% of the money going towards pandemic relief.
In stocks, Johnson & Johnson’s single-shot COVID-19 vaccine received emergency-use authorization from the U.S. Food and Drug Administration and is expected to begin shipping 4 million doses immediately.
|JNJ||JOHNSON & JOHNSON||159.47||-0.09||-0.06%|
|DAL||DELTA AIR LINES INC.||49.09||+0.77||+1.58%|
|RCL||ROYAL CARIBBEAN CRUISES||88.14||+1.56||+1.80%|
|MAR||MARRIOTT INTERNATIONAL, INC.||151.45||+2.64||+1.77%|
News of another vaccine boosted airlines, cruise ship operators and other companies that have been hit hard by restrictions aimed at slowing the spread of COVID-19.
Elsewhere, GameStop Corp. and other heavily shorted stocks, including AMC Entertainment Holdings Inc. and Koss Corp. continued to squeeze higher.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||9.57||+0.72||+8.13%|
ExxonMobil Corp. shares spiked after CNBC reported activist investor Jeff Ubben will join the company's board of directors.
Boeing tacked on over 5% on word that United Airlines is buying 25 737 Max Jets.
|BA||THE BOEING CO.||257.15||+3.92||+1.55%|
|UAL||UNITED AIRLINES HOLDINGS||57.69||+1.03||+1.82%|
In earnings, Berkshire Hathaway reported operating income, Warren Buffett’s preferred performance measure, rose 14% from a year ago. The company, which bought back $25 billion of stock in 2020 plans to continue share repurchases in the current fiscal year.
DraftKings Inc. received multiple upgrades and price target hikes after the sports-betting platform last week raised its outlook for the current fiscal year.
In commodities, West Texas Intermediate crude oil ticked lost 86 cents to $60.64 per barrel and gold slipped $5.60 to $1,722.50 an ounce.
Global markets were higher across the board.
Germany's DAX 30 paced the advance in Europe, trading up 1.64%, while Britain’s FTSE 100 and France's CAC 40 climbed 1.62% and 1.57%, respectively.
In Asia, Japan’s Nikkei 225 surged 2.41%, Hong Kong’s Hang Seng index advanced 1.63% and China’s Shanghai Composite index rose 1.21%.