U.S. stocks edged higher on Monday as sentiment got a boost after 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 Dow Jones Industrials vaulted 291.75 points to kick off the day and the week at 31,788.05.
The S&P leaped 16.81 points to 3,858.75.
The NASDAQ Composite dipped 10.91 points, or 1.6%, to 12,920.15, with lofty valuations that got hit hard by rising yields staged a comeback. Tesla jumped 2%, while Peloton popped 5%.
The Senate passed a $1.9-trillion economic relief and stimulus bill on Saturday, paving the way for extensions to unemployment benefits, another round of stimulus checks and aid to state and local governments. The Democrat-controlled House is expected to pass the bill later this week. President Joe Biden is expected to sign it into law before unemployment aid programs expire on March 14.
The stimulus news boosted stocks banking on a strong economic recovery. Shares of retailers, energy companies and banks were higher.
Disney shares added 2% after California eased Covid rules, paving the way for Disneyland to reopen on a limited basis in April.
Prices for 10-Year Treasurys sagged, raising yields to 1.59% from Friday’s 1.57%. Treasury prices and yields move in opposite directions.
Oil prices shed 78 cents to $65.31 U.S. a barrel.
Gold prices dulled $15.20 to $1,683.30.