A woman walks past the New York Stock Exchange (NYSE) on Wall Street in New York City on January 12, 2021.
ANGELA WEISS | AFP | Getty Images
US stock futures rallied during Sunday night trading, indicating a strong opening on the first day of trading in March.
Dow futures were up 175 points. S&P 500 futures were up 0.7% and Nasdaq 100 futures were up 0.7%.
To bolster sentiment on vaccines, the advisory panel from the Centers for Disease Control and Prevention voted unanimously on Sunday to recommend the use of Johnson & Johnson’s one-time Covid-19 vaccine for people 18 and older. The company initially expects to ship 4 million doses.
Last week, equities were under pressure from rising interest rates. Higher interest rates can threaten equity dominance, as bonds are considered less risky. The return on the benchmark 10-year rose to 1.6% on Thursday, but fell to around 1.41% on Friday.
10-Year Treasury futures rose during overnight trading, implying that interest rates would fall on Monday. Prices move inversely with revenues.
The Dow Jones Industrial Average and S&P 500 lost 1.7% and 2.5%, respectively, between Monday and Friday.
The tech-heavy Nasdaq Composite is down more than 4% this week and suffered its worst one-day sell-off since October on Thursday. Technology companies trust that they can borrow money at a low interest rate to invest in future growth.
“Bond market volatility soared to its highest level since April and until some calm and a new peak yield is found, this is certainly the main focus for investors,” Jim Paulsen, The Leuthold Group’s chief investment strategist, told CNBC.
Main averages rose for February, supported by a strong earnings season, positive news from the introduction of vaccines and hopes for a different stimulus package.
The House passed a $ 1.9 trillion Covid bill, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the legislation.
The Dow gained 3.15% for the third positive month in February in four. The S&P 500 gained 2.61% and the Nasdaq Composite gained nearly 1% for the fourth consecutive positive month.
The last February reading for Markit’s U.S. Purchasing Managers Index for February appears Monday at 9:45 a.m.ET. Economists polled by Dow Jones expect a reading of 58.5, the same as December’s reading of 58.5.
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