Dow futures rise, extending Monday’s 300-point rally

Dow futures moved higher in overnight trading on Monday, putting the index on track to extend its rally from the regular session. Dow futures rose about 130 points. S&P 500 futures gained 0.45% and Nasdaq 100 futures rose 0.55%. On Monday, the Dow Jones Industrial Average rallied more than 300 points on investor optimism about the economic comeback from the pandemic. At its session high, the 30-stock average jumped 650 points to hit an intraday record.

The bullishness was fueled in part by the Senate’s passing of a $1.9 trillion economic relief and stimulus bill on Saturday, which is set to include another round of stimulus checks. Banks, airlines, cruise lines and retailers all rose on hopes of a sharp economic rebound. Additionally, the Centers for Disease Control and Prevention said Monday that people who’ve been fully vaccinated against Covid-19 can meet safely indoors without masks. The announcement came after the U.S. reached 3 million vaccinations over the weekend.

Technology stocks, meanwhile, continued their recent weakness as the Nasdaq Composite dropped 2.4%. The tech-heavy benchmark closed more than 10% below its Feb.12 closing high, falling into correction territory. The S&P 500 also ended the day down about 0.5%, dragged down by shares of Tesla, PayPal, Etsy and Advanced Micro Devices.

The high-growth names have been pressured by rising interest rates lately. The U.S. 10-year Treasury yield stood around 1.6% on Monday. However, hedge fund manager David Tepper said the recent sharp rise in rates is likely over and it’s hard to be bearish on stocks right now.

The small-cap benchmark Russell 2000 gained about 0.5% on Monday.

Dow futures rise, extending Monday’s 300-point rally, CNBC, Mar 9