BUSINESS Dow jumps over 500 points shortly after opening

BUSINESS

Dow jumps over 500 points shortly after opening

Xinhua

06:46, March 02, 2021

NEW YORK, March 1 (Xinhua) -- U.S. stocks opened noticeably higher on Monday as bond yields' surge cooled.

A trader works at the New York Stock Exchange (NYSE) in New York, the United States, March 17, 2020. (Photo by Michael Nagle/Xinhua)

Shortly after the opening bell, the Dow Jones Industrial Average jumped 527.17 points, or 1.7 percent, to 31,459.54. The S&P 500 rose 61.53 points, or 1.61 percent, to 3,872.68. The Nasdaq Composite Index added 209.10 points, or 1.59 percent, to 13,401.45.

All the 11 primary S&P 500 sectors advanced in morning trading, with energy up 2.8 percent, leading the gains.

The above market reactions came as bond yields retreated after last week's surge. The yield on the benchmark 10-year U.S. Treasury fell to around 1.43 percent Monday morning. It spiked more than 16 basis points to 1.614 percent last Thursday, its highest level since February 2020.

Normally, low yields result in low borrowing costs, attractive mortgage rates, and could provide a boost to the equity markets, while higher yields make bonds a more viable alternative to stocks, particularly those that have seen their valuations stretch.

For the week ending Friday, the Dow lost 1.8 percent, while the S&P 500 and the Nasdaq fell 2.5 percent and 4.9 percent, respectively, as a surged in bond yields unnerved investors who rushed to dump risk assets, especially high-flying shares.

Investors also eyed updates regarding U.S. stimulus. The Democrats-held House approved a 1.9-trillion-U.S.-dollar COVID-19 relief package early Saturday morning amid unanimous Republican opposition, sending the bill to the Senate.

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