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A woman walks past the New York Stock Exchange (NYSE) on Wall Street on January 12, 2021 in New York City.
ANGELA WEISS | AFP | Getty Images
On Sunday, US equity futures rose in overnight trading, indicating a strong open on the first trading day in March.
Dow futures rose 135 points. S&P 500 futures were up 0.6% and Nasdaq 100 futures were up 0.7%.
Stimulating sentiment on the vaccine front, the Centers for Disease Control and Prevention advisory committee voted unanimously on Sunday to recommend the use of the one-shot Covid-19 vaccine from Johnson & Johnson for people 18 and over. more. The company plans to ship 4 million doses initially.
Last week stocks came under pressure from rising interest rates. Higher interest rates can threaten the dominance of equities as bonds are seen as less risky. The 10-year benchmark yield hit 1.6% on Thursday, but fell to around 1.41% on Friday.
10-year Treasury bill futures rose in overnight trading, implying that yields would fall on Monday. Prices move inversely with returns.
The Dow Jones Industrial Average and the S&P 500 lost 1.7% and 2.5% respectively between Monday and Friday.
The high-tech Nasdaq Composite fell more than 4% for the week, suffering its worst single-day sell since October Thursday. Tech companies rely on the ability to borrow money at a low rate in order to invest in future growth.
“The volatility of the bond market is at its highest level since April and until some calm and a new peak in yield is found, this is indeed the main focus for investors,” CNBC told CNBC Jim Paulsen, Chief Investment Strategist of the Leuthold Group.
Major averages rose for February, supported by a strong earnings season, positive news on the vaccine rollout and hopes for another stimulus package.
The House passed a $ 1.9 trillion Covid relief bill, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the bill.
The Dow Jones gained 3.15% for its third positive month in four in February. The S&P 500 gained 2.61% and the Nasdaq Composite gained nearly 1% for its fourth consecutive positive month.
The latest February reading of Markit’s U.S. Manufacturing Purchasing Managers Index for February will be released at 9:45 a.m. ET on Monday. Economists polled by Dow Jones are expecting a reading of 58.5, the same as the December reading of 58.5.
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