A woman walks past the New York Stock Exchange (NYSE) on Wall Street on January 12, 2021 in New York City.
HECTOR ANGELICA WEISS AFP | Getty Images
Futures U.S. stock markets rose in trading on Sunday night, pointing to a sharp opening on the first trading day of March.
Dow futures rose 175 points. S&P 500 futures rose 0.7% and Nasdaq 100 futures rose 0.7%.
The Centers for Disease Control and Prevention advisory group pushed sentiment on the vaccine front to vote unanimously Sunday to recommend the use of the Covid-19 vaccine from a single run of Johnson & Johnson for people 18 years or older. The company plans to ship 4 million doses initially.
Last week, interest rates increased stock pressure. Higher interest rates can threaten the dominance of stocks, as bonds are considered less risky. The 10-year benchmark yield reached 1.6% on Thursday, but retreated to 1.41% on Friday.
10-year Treasury futures rose in overnight trading, implying that yields would fall on Monday. Prices move inversely to yields.
The Dow Jones Industrial Average and the S&P 500 lost 1.7% and 2.5%, respectively, between Monday and Friday.
The Nasdaq Composite, which has had a lot of technology, fell more than 4% during the week and suffered its worst sales period on Thursday to October. Technology companies are confident they can borrow money at a low rate to invest in future growth.
“Bond market volatility has risen to its highest level since April and until there is some calm and a new maximum level of returns, this asset will be the key focus for investors,” he told CNBC’s Jim Paulsen, the Leuthold Group’s chief investment strategist.
Major averages rose during the month of February, bolstered by a strong profit season, positive news about vaccine launches and anther stimulus package hopes.
The House early Saturday passed a $ 1.9 trillion Covid relief law, the American Rescue Plan Act of 2021. The Senate will now consider the legislation.
The Dow gained 3.15% in the third positive month of February 4th. The S&P 500 gained 2.61% and the Nasdaq Composite gained nearly 1% for the fourth straight month.
The latest February reading of Markit’s U.S.-made purchasing managers index for February comes out Monday at 9:45 a.m. ET. Economists surveyed by Dow Jones expect a reading of 58.5, the same as the December reading of 58.5.
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