Dow futures rose on Monday night trading, putting the index on track to extend its rally from the regular session.
Dow futures rose about 150 points. The S&P 500 futures gained 0.5% and the Nasdaq 100 futures rose 0.6%.
On Monday, the Dow Jones Industrial Average added more than 300 points on investor optimism about the economic recovery from the pandemic. At the height of the session, the average of 30 shares jumped 650 points to reach an intraday record.
The strength was fueled in part by the Senate’s approval of financial aid and a $ 1.9 trillion stimulus bill on Saturday, which will include another round of stimulus checks. Banks, airlines, cruise lines and retailers rose in hopes of a strong economic rebound.
In addition, the Centers for Disease Control and Prevention said Monday that people who have been completely vaccinated against Covid-19 can gather safely inside without masks. The announcement came after the United States reached 3 million vaccines over the weekend.
Meanwhile, technology stocks continued their recent weakness, as the Nasdaq Composite fell 2.4%. The technology benchmark closed more than 10% below its maximum closed on February 12 and fell into correction territory.
The S&P 500 also ended the day down around 0.5%, dragged down by shares of Tesla, PayPal, Etsy and Advanced Micro Devices.
High-growth names have been pressured lately by rising interest rates. Ten-year U.S. Treasury yields stood at around 1.6% on Monday. However, hedge fund manager David Tepper said the sharp recent rate hike is likely to be over and it is now difficult to be bearish in stocks.
Monday’s “initial rally was mainly due to weekend news that President Biden’s relief package had passed,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “Ultimately, however, equity investors are currently obsessed with bond yields keeping the Nasdaq and S&P 500 technology sector under pressure all day. Since ten-year bond yields did not pull out of the level of 1.6% near closing today technological stocks intensified to the end “.
“However, most of the stock market had a good day, as small-cap stocks and several reopening sectors posted healthy gains,” Paulsen added.
On Monday, the Russell 2000 minimum capitalization level gained about 0.5%.