Shares are rising as Wall Street cheers on Biden’s stimulus package

The Dow rose more than 600 points on Monday, or 2%, on Monday when investors applauded the passage of the Senate from a Covid-19 aid package aimed at strengthening the U.S. economy. The S&P 500, Wall Street’s broadest measure, also rose 0.8%.

But on Monday the sale of technology shares continued, dragging the Nasdaq 0.8%. In fact, apple (AAPL), Microsoft (MSFT) i Sales force (CRM) they were the only Dow stocks that were in red.

And Tesla, down 3%, was one of the big retarders of the S&P 500. Tesla (TSLA) it has now fallen by almost 18% so far this year.

Investors seem concerned about what will happen to big technologies and other growth stocks in an environment when inflationary pressures rise and bond yields rise.

The 10-year Treasury yield rose to 1.6% after the Senate approved President Biden’s $ 1.9 trillion stimulus proposal, paving the way for global legislation to be signed. to law earlier this week.

An improving economy should be good news for investors, even if major technology stocks continue to decline.

It is possible for investors to participate in what is called sector rotation: coming together to find new market leaders who should benefit from higher inflation and an improved economy, such as banks, companies consumers and energy stocks.

Optimism about Covid-19 vaccines also confides in Wall Street the hope that consumers can soon return to more normal lives and do things like go to the movies, take vacations, and go shopping again more freely.