A woman walks past the New York Stock Exchange (NYSE) on Wall Street in New York City on January 12, 2021.
ANGELA WEISS | AFP | Getty Images
US stock futures rose in overnight trading on Sunday, pointing to a strong open on the first day of trading in March.
Dow futures rose 175 points. S&P 500 futures rose 0.7% and Nasdaq 100 futures rose 0.7%.
The Centers for Disease Control and Prevention Advisory Board unanimously decided on Sunday to recommend the use of Johnson & Johnson’s one-off Covid-19 vaccine for people aged 18 and over. The company expects to initially ship 4 million cans.
Last week stocks were put under pressure by rising interest rates. Higher interest rates can jeopardize the dominance of stocks as bonds are viewed as less risky. The 10-year benchmark’s return was 1.6% on Thursday but fell to around 1.41% on Friday.
10-year Treasury futures rose overnight, meaning yields would fall on Monday. Prices move in the opposite direction to returns.
The Dow Jones Industrial Average and S&P 500 lost 1.7% and 2.5%, respectively, between Monday and Friday.
The tech-heavy Nasdaq Composite fell more than 4% over the week and suffered its worst one-day sell-off since October on Thursday. Technology companies rely on being able to borrow money at low interest rates to invest in future growth.
“The volatility in the bond markets rose to its highest level since April. Until a calm and new high level for the yields emerges, this is the main focus for investors,” Jim Paulsen, chief investment strategist of the Leuthold Group, told CNBC.
Key averages rose in February on a strong earnings season, positive news on the vaccine launch and hopes for another stimulus package.
The House passed a $ 1.9 trillion Covid Relief Act, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the legislation.
The Dow was up 3.15% in February for its third positive month in four years. The S&P 500 was up 2.61% and the Nasdaq Composite was up nearly 1% for the fourth positive month in a row.
The final February reading for Markit’s US Manufacturing Purchasing Managers Index for February comes out on Monday at 9:45 a.m. (CET). Economists polled by Dow Jones expect a value of 58.5, just like they did in December of 58.5.
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