Stock indexes traded mostly Monday morning, with technology-related stocks under pressure, as government bond yields rose sharply after the Senate approved a $ 1.9 trillion COVID-19 relief package. of dollars. The Dow Jones industrial average [: DJIA] traded 121 points, 0.4%, at 31,606, the S&P 500 SPX index,
rose 0.1% to 3,842, while the Nasdaq COMP Composite Index,
it fell 0.2% to 12,899. Expectations that aggressive tax spending coupled with a rapidly reopening economy as vaccine implementations continue have fueled expectations of at least a short-term rise in inflation. This, in turn, has contributed to an increase in bond yields which has helped fuel the rotation of growth-oriented stocks with high valuations towards stocks that have lagged behind in the post-COVID stock market recovery. In the corporate news, shares of AMC Entertainment Holdings Inc. AMC,
rose as the bounce of “meme” shares continued after last month’s fall, after Wedbush analyst Michael Pachter doubled his price target ahead of the earnings report. company, citing growing optimism about the post-pandemic environment. Pachter raised its stock target to $ 5.00 from $ 2.50, but that target was 38% below Friday’s closing price of $ 8.05. Shares of AMC and GameStop Corp. GME,
have been a focus of retail investors and short-term sellers lately. GameStop took advantage of Chewy co-founder Ryan Cohen to lead its e-commerce shift, according to reports.