Wall Street opens higher as bond jitters get lighter. Dow up
By Geoffrey Smith
Investing.com – US equity markets opened significantly higher on Monday after bond market turmoil eased amid the first signs of inflation in the post-Covid economy.
At 9:40 a.m. ET (1440 GMT) it rose 510 points, or 1.7%, to 31,442 points. That and that were both up 1.6%. All three indexes fell last week amid concerns that inflationary pressures might force the Federal Reserve and other central banks to cut monetary support to the economy. The turmoil that pushed bond yields to their highest level in over a year was in turn fueled by higher commodity prices and the prospect of strong US Treasury bond issuance after the government’s $ 1.9 trillion stimulus package released the Had gone through the House of Representatives.
Setting the tone was the approval for an emergency against Covid-19 from Johnson & Johnson (NYSE 🙂 ‘s single-shot vaccine. The drug was designed to accelerate the spread of immunity among the US population and facilitate the rapid reopening of the economy. J&J stock was up 1.7% but appears to be still on the downtrend after the approval was fully discounted by the market over the past few weeks.
Boeing (NYSE 🙂 stock was an early gain, rising 5.6% after United Airlines (NASDAQ 🙂 bolstered an order for 737 MAX aircraft. This was part of what has now become a familiar pattern of value stocks outperforming the tech growth stocks that dominated the rally last year.
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