Dow futures rose higher on Monday in overnight trading, which put the index on course to extend its rally from the regular session.
Dow futures rose about 150 points. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.6%.
On Monday, the Dow Jones industrial average averaged more than 300 points on investor optimism about the economic return from the pandemic. At its highest session, the average of 30 stocks jumped 650 points to reach an intraday record.
The strength was fueled in part by the Senate, which passed a $ 1.9 billion economic relief and stimulus bill on Saturday, which is expected to include another round of stimulus checks. Banks, airlines, crossovers and retailers have all risen in hopes of a sharp economic recovery.
In addition, the Centers for Disease Control and Prevention said Monday that people who have been fully vaccinated against Covid-19 can safely enter the home without masks. The announcement comes after the US reached 3 million vaccinations this past weekend.
Technology stocks, meanwhile, continued their recent weakness as the Nasdaq compound fell 2.4 percent. The technology-heavy measure closed more than 10% below the February 12 closing period and fell into the correction area.
The S&P 500 also ended the day with around 0.5%, dragged down by shares of Tesla, PayPal, Etsy and Advanced Micro Devices.
Rising interest rates have recently put pressure on high growth. The U.S. Treasury yield for ten years on Monday was about 1.6%. However, hedge fund manager David Tepper said the recent sharp rise in rates is likely to be over and that it is currently difficult to be bearish.
Monday’s ‘initial rally was largely due to news over the weekend that President Biden’s emergency relief package had passed,’ Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. “Ultimately, however, equity investors are currently reeling from bond yields that keep the Nasdaq and S&P 500 technology sectors under pressure all day. As the 10-year yield could not retreat from the 1.6% level near the end of today, eventually the pressure on technology stocks has increased to the end. ”
“Nevertheless, most of the stock market had a great day, as small stocks and several reopening sectors made good profits,” Paulsen added.
The benchmark for small business Russell 2000 rose by about 0.5% on Monday.