Dow Heads for Biggest Gain in 4 Mos. - InvestingChannel

Dow Heads for Biggest Gain in 4 Mos.



The Dow Jones Industrial Average headed for its biggest gain in nearly four months, jumping more than 2% as Treasury yields retreated.

The Dow Jones Industrials surged 637.78 points, or 2.1%, to move into noon hour at 31,570.15, led by Boeing which climbed 6.8% and put the plane maker on pace for its best day since Nov. 9.

The S&P 500 recouped 86.7 points, or 2.3%, to 3,897.83, as all 11 sectors traded in the green.

The NASDAQ Composite spiked 316.17 points, or 2.4%, to 13,508.51.

Boosting sentiment on the vaccine front, the Centers for Disease Control and Prevention advisory panel voted unanimously Sunday to recommend the use of Johnson & Johnson’s one-shot COVID-19 vaccine for people 18 years of age and older. The company expects to ship four millions doses initially.

Last week, the blue-chip Dow and S&P 500 lost 1.7% and 2.5%, respectively. The technology-heavy NASDAQ dropped more than 4% during the same period, after suffering its worst one-day sell-off since October on Thursday. Technology companies rely on being able to borrow money for a low rate in order to invest in future growth.

The major averages rose for the month of February, bolstered by a strong earnings season, positive news on the vaccine rollout and hopes of another stimulus package.

The Dow gained 3.2% for its third positive month in four in February. The S&P 500 gained 2.6% and the NASDAQ gained nearly 1% for its fourth positive month in a row.

On the stimulus front, the House of Representatives passed a $1.9-trillion COVID relief bill, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the legislation.

Prices for 10-Year Treasurys dropped a bit, boosting yields to 1.44% from Friday’s 1.41%. Treasury prices and yields move in opposite directions.

Oil prices shied away 12 cents to $61.38 U.S. a barrel.

Gold prices jumped $1.90 to $1,730.70