The Dow Jones industrial average crossed the 32,000 mark for the first time to hit a record high after the Senate approved an incentive bill to boost the economy’s recovery from the coronovirus crisis.
The blue-chip index climbed more than 2 percent, or 651.74 points, to an intraday record of 32,148.04 after the Saturday passage of Senate President Biden’s 1.9 trillion spending plan on Monday.
The House also set to vote on the COVID-19 Relief Bill this week, reducing the S&P 500 to 1 percent. Materials, industry, utilities and financials led the benchmark index, which traded below the hit all-time record last month.
“Now you have a scenario in which the market is widening,” Quincy Crosby, chief market strategist at Prudential Financial, told the Post. “Every positive data the vaccine campaign releases on, for example, more successful, it is $ 1.9 trillion [bill] – All this shows that the economy is becoming normal. “
But the tech-heavy Nasdaq slipped as much as 1.6 percent in a choppy session, as prospects for an economic reopening and rising bond yields pressurized Silicon Valley shares.
All the so-called FAANG tech names – Facebook, Amazon, Apple, Netflix and Google’s parent Alphabet – were traded on Monday afternoon, as were companies that have benefited from COVID-19 lockdowns such as Zoom and Pelican.
“This market is still in a stage of ‘disbelief’, characterized early in a corrective pattern and I would expect the sentiment for tech and related names to subside in recent months,” said David Keller, chief market said. Strategist at stockcharts.com.
Rally in other areas suggested that Wall Street’s apprehension about rising yields for US government bonds had begun to subside, even with the feds determined to inject another load of money into the economy.
Yields for treasury bonds, which run contrary to value, have climbed in recent weeks amid concerns about inflation-boosting coronovirus stimulus spending. Treasury Secretary Janet Yellen on Monday dispelled those fears, saying she did not think the latest package would lead to a rise in consumer prices.
“It’s a bill that would actually provide Americans with the need to relieve the other side of this epidemic,” Yellen said in an MSNBC interview.
Billionaire hedge-fund titan David Tepper also appeared to calm the nerves of Wall Street, saying he thought the recent increase in bond yields would soon stabilize, making the stock “very hard” on the stock.
Jim Paulson, chief investment strategist for the Louthound Group, agreed that bond yields would likely breathe a sigh of relief in the near term, although they could go ahead later this year.
“High yields make people think about how much they have in bonds or not,” Pauls told The Post. “… Some people can go, ‘Man, this is the highest yield I’ve seen in months.” This may attract some buyers. “
With post wires
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