Stock index benchmarks traded higher on Monday morning, while technology-related stocks were under pressure as government bond yields rose further after easing a $ 1.9 billion COVID-19 easing package. The Dow Jones Industrial Average [: DJIA] the S&P 500 index SPX trades 121 points, or 0.4%, at 31,606,
climbed 0.1% to 3,842, while the Nasdaq Composite Index COMP,
was down 0.2% at 12,899. The expectation that aggressive fiscal spending coupled with a rapidly reopening economy as vaccination continues continues has raised expectations for at least a short-term increase in inflation. This in turn contributed to a rise in bond yields, which helped move away from growth-oriented equities with high valuations towards equities left behind in the stock market’s recovery after COVID. In corporate news, shares of AMC Entertainment Holdings Inc. AMC,
rose as the “meme” share of last month’s jump continues, after Wedbush analyst Michael Pachter doubled his price target ahead of the company’s earnings report, citing growing optimism about the post-pandemic environment. Pachter raised its target for the stock from $ 2.50 to $ 5.00, but the target was 38% below Friday’s closing price of $ 8.05. Shares of AMC and GameStop Corp. GME,
was a focus of late investors and short sellers. GameStop has, according to Chewy, co-founder Ryan Cohen named to lead its e-commerce shift.
