Stock index benchmarks typically traded higher on Monday morning, with technology-related stocks under pressure as government bond yields extended their rise after the Senate passed a $ 1.9 trillion COVID-19 aid package. The Dow Jones Industrial Average [: DJIA] traded 121 points, or 0.4%, on 31,606, the S&P 500 index SPX,
climbed 0.1% to 3,842, while the Nasdaq Composite Index COMP,
was down 0.2% to 12,899. The expectation that aggressive fiscal spending coupled with a rapidly reopening economy as vaccine introduction continues has fueled expectations for at least short-term inflation. That, in turn, has contributed to a rise in bond yields, which has contributed to a rotation from growth-oriented stocks with high valuations to stocks that have lagged during the stock market recovery after COVID. In company news, shares of AMC Entertainment Holdings Inc. AMC,
The “meme” share rebound from last month’s decline increased after Wedbush analyst Michael Pachter doubled his price target ahead of the company’s earnings report, citing growing optimism about the post-pandemic environment. Pachter raised his price target from $ 2.50 to $ 5.00, but that target was 38% below Friday’s closing price of $ 8.05. Shares of AMC and GameStop Corp. GME,
have recently been a focus of private investors and short sellers. GameStop tapped Chewy co-founder Ryan Cohen to lead the ecommerce shift, according to reports.