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Wall Street closed mixed on Monday buoyed by two forces of different directions. The Dow ended sharply higher as market participants expect the new $1.9 trillion fiscal stimulus to be introduced by next week. However, higher yield on long-term U.S. sovereign bonds forced the Nasdaq Composite to finish in correction territory. The S&P 500 also ended in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rallied 1% or 306.14 points to close at 31,802.44. The blue-chip index surged more than 650 points at intraday high and touched a fresh all-time high at 32,148.04. The index touched above 32,000 level for the first time since Feb 24. Notably, 25 components of the 30-stock index ended in the green while 5 in red and.
The Nasdaq Composite finished at 12,609.16, tumbling 2.4% or 310.99 points due to sharp decline in large-cap tech stocks. The teach-heavy index entered in correction territory after finishing more than 10% below its recent closing high of 14,095.47 recorded on Feb 12.
Meanwhile, the S&P 500 fell 0.5% to end at 3,821.35. In the intraday trading, the broad-market index rose 1%. The Utilities Select Sector SPDR (XLU), the Materials Select Sector SPDR (XLB) and the Financials Select sector SPDR (XLF) gained 1.4%, 1.3% and 1.3%, respectively, while the Technology Select Sector SPDR (XLK) tanked 2.4%. Notably, eight out of eleven sectors of the benchmark index closed in the green while three in red.
The fear-gauge CBOE Volatility Index (VIX) was up 3.3% to 25.47. A total of 14.03 billion shares were traded on Monday, lower than the last 20-session average of 15 billion. Advancers outnumbered decliners on the NYSE by a 1.39-to-1 ratio. On Nasdaq, a 1.03-to-1 ratio favored declining issues.
Expectations of a Fresh Large Fiscal Stimulus
On Mar 4, the Senate passed a revised $1.9 trillion coronavirus relief package proposed by President Joe Biden in mid-January. The House of Representatives, where the Democrats hold the majority, is likely to pass the bill on Mar 9 and send it to Biden for his signature before a Mar 14 deadline to renew unemployment aid programs.
On Jan 14, President elect Joe Biden proposed a new $1.9 trillion coronavirus-aid package called “American Rescue Plan”. The revised plan will include a direct payments of $1,400 and supplemental unemployment benefits to $300 per week through Sep 6. Minimum wage rate to be hiked to $15 per hour and moratoriums on eviction and foreclosure on mortgages to be extended to Sep 30.
Biden's proposal includes $15 billion in grants to small businesses, along with $35 billion in low-interest loans. The Small Business Paycheck Protection Program of $284 billion in loans will also continue. The plan will include $20 billion for a national vaccination program, $50 billion for COVID testing, and $350 billion aid to state and local governments.
In addition, the plan will provide $130 billion for reopening of schools, $35 billion for higher education and $5 billion for a “Hardest Hit Education Fund.”
Hike in Government Bond Yields
On Mar 8, the yield on 10-year U.S. Treasury Note rose 4.3 basis points to 1.594%, marking its highest since Feb 13, 2020. The yield on 30-year U.S. Treasury Note rose 2 basis points to 2.306%, its second-highest level of 2021.
Gradual reopening of the economy and massive fiscal stimulus compelled investors to reallocate funds from safe-haven government bonds to risky asset like equities resulting in a spike in government bond yields.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Stock Market News for Mar 9, 2021
Wall Street closed mixed on Monday buoyed by two forces of different directions. The Dow ended sharply higher as market participants expect the new $1.9 trillion fiscal stimulus to be introduced by next week. However, higher yield on long-term U.S. sovereign bonds forced the Nasdaq Composite to finish in correction territory. The S&P 500 also ended in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rallied 1% or 306.14 points to close at 31,802.44. The blue-chip index surged more than 650 points at intraday high and touched a fresh all-time high at 32,148.04. The index touched above 32,000 level for the first time since Feb 24. Notably, 25 components of the 30-stock index ended in the green while 5 in red and.
The Nasdaq Composite finished at 12,609.16, tumbling 2.4% or 310.99 points due to sharp decline in large-cap tech stocks. The teach-heavy index entered in correction territory after finishing more than 10% below its recent closing high of 14,095.47 recorded on Feb 12.
Tech behemoths like Apple Inc. (AAPL - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Netflix Inc. (NFLX - Free Report) plummeted 4.2%, 4.3% and 4.5%, respectively. Apple carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the S&P 500 fell 0.5% to end at 3,821.35. In the intraday trading, the broad-market index rose 1%. The Utilities Select Sector SPDR (XLU), the Materials Select Sector SPDR (XLB) and the Financials Select sector SPDR (XLF) gained 1.4%, 1.3% and 1.3%, respectively, while the Technology Select Sector SPDR (XLK) tanked 2.4%. Notably, eight out of eleven sectors of the benchmark index closed in the green while three in red.
The fear-gauge CBOE Volatility Index (VIX) was up 3.3% to 25.47. A total of 14.03 billion shares were traded on Monday, lower than the last 20-session average of 15 billion. Advancers outnumbered decliners on the NYSE by a 1.39-to-1 ratio. On Nasdaq, a 1.03-to-1 ratio favored declining issues.
Expectations of a Fresh Large Fiscal Stimulus
On Mar 4, the Senate passed a revised $1.9 trillion coronavirus relief package proposed by President Joe Biden in mid-January. The House of Representatives, where the Democrats hold the majority, is likely to pass the bill on Mar 9 and send it to Biden for his signature before a Mar 14 deadline to renew unemployment aid programs.
On Jan 14, President elect Joe Biden proposed a new $1.9 trillion coronavirus-aid package called “American Rescue Plan”. The revised plan will include a direct payments of $1,400 and supplemental unemployment benefits to $300 per week through Sep 6. Minimum wage rate to be hiked to $15 per hour and moratoriums on eviction and foreclosure on mortgages to be extended to Sep 30.
Biden's proposal includes $15 billion in grants to small businesses, along with $35 billion in low-interest loans. The Small Business Paycheck Protection Program of $284 billion in loans will also continue. The plan will include $20 billion for a national vaccination program, $50 billion for COVID testing, and $350 billion aid to state and local governments.
In addition, the plan will provide $130 billion for reopening of schools, $35 billion for higher education and $5 billion for a “Hardest Hit Education Fund.”
Hike in Government Bond Yields
On Mar 8, the yield on 10-year U.S. Treasury Note rose 4.3 basis points to 1.594%, marking its highest since Feb 13, 2020. The yield on 30-year U.S. Treasury Note rose 2 basis points to 2.306%, its second-highest level of 2021.
Gradual reopening of the economy and massive fiscal stimulus compelled investors to reallocate funds from safe-haven government bonds to risky asset like equities resulting in a spike in government bond yields.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>