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On Monday, the broader markets gained with bond yields falling from last week’s high and bringing optimism back to Wall Street. Stocks across tech, aviation, energy, and electric-vehicle sectors gained properly.
On Monday, March 1, the US stock market registered a marketwide rally with indices taking the surge post on yield cool-offs. Growth stocks were pack in action with the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXI) shooting 3% closing the day at 13,588 levels. The market demonstrated significant gains.
Similarly, the Dow Jones Industrial Average (INDEXDJX: .DJI) gained 1.95% or 600 points closing at its all-time high of 31,535 levels. Apple Inc (NASDAQ: AAPL) was the top performer on Nasdaq both gaining over 5.3%. The S&P 500 (INDEXSP: .INX) also gained 2.4% posting its best day since June 2020 and closing at 3901 levels.
Last week, the 10-year Treasury Yields shot to a high of 1.6% and stayed for a significant time above 1.5%. This dampened the market sentiments as Wall Street investors were more likely to move to risk-free assets. However, the passing of the $1.9 trillion stimulus bill in the House on Sunday, provided the much necessary fuel to the market.
Also, on Monday, the 10-year U.S. Treasury yield crashed to a low of 1.4% and stayed at those levels. In a note to clients, David Kostin, Goldman Sachs chief US equity strategist said:
“Investors ask whether the level of rates is becoming a threat to equity valuations. Our answer is an emphatic ‘no’. Our bullish US equity view has already embedded expectations of rising interest rates.”
Market Gains on Monday
Apart from tech, the electric vehicle (EV) sector registered strong growth in the same period. As said, the AAPL stock gained 5.3% ending the session at 127.79 levels.
After a week of subdued performance, Tesla Inc (NASDAQ: TSLA) gained 6.36% surging past $700 levels and ending the session at $718 levels. The global chip shortage has been hitting the tech industry, especially tesla. The company had to halt the production of its Model 3 sedan at its Fremont factory.
Tesla’s Chinese rival Nio also gained 8.69% on Monday ending the session at $49.76 levels. Also, General Motors Company (NYSE: GM) stock registered a bullish rebound from its 10-week moving average.
Aviation stock Boeing Co (NYSE: BA) gained 5.84% on Monday closing the session at $224.39. Peter Boockvar, chief investment officer at Bleakley Advisory Group told CNBC:
“Equity investors are still looking at the rise in rates mostly as ‘a good thing’ and not yet as a threat notwithstanding some shaking of the tree in high multiple stocks and other parts of the market last week. The benefits of the vaccines vs the challenge of higher rates will be the theme this year.”
Other stock market news can be found here.