- US equities fluctuated on Monday as the Senate’s approval of a $1.9 trillion stimulus package revived the value rotation.
- Investors ditched tech stocks and Treasurys for value names and cyclicals in hopes for a swift economic rebound.
- Oil erased early gains and slid after a Saudi Arabian crude terminal was attacked in a Sunday drone strike.
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US stocks wavered on Monday as the Senate’s approval of a massive new relief package revived the value rotation.
Senators voted along party lines on Saturday to push a $1.9 trillion stimulus plan closer to President Joe Biden’s desk. The package is expected to receive a final House vote on Tuesday, giving Democrats time to enact a supplement to federal unemployment benefits before the current boost expires on March 14. The package also includes $1,400 direct payments, aid for state and local governments, and funding for vaccine distribution.
The package is widely expected to accelerate economic growth and lift inflation. The bill’s Senate vote renewed investors’ moves out of growth stocks and Treasurys and into riskier sectors more likely to benefit from broad reopening. Rising yields cut into tech stocks’ appeal on Monday and cyclical stocks gained.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Monday:
- S&P 500: 3,852.73, up 0.28%
- Dow Jones industrial average: 31,623.94, up 0.41% (127.64 points)
- Nasdaq composite: 12,898.53, down 0.17%
The choppy session followed a broad market upswing to close out last week. Stocks rose on Friday as stronger-than-expected February payroll additions led investors to buy the dip in tech stocks. Government data also showed the unemployment rate falling to 6.2%, though other gauges of labor-market health remain at worrying highs.
General Electric gained after The Wall Street Journal reported the company is nearing a deal to merge its jet-leasing arm with AerCap Holdings. The agreement, should it go through, would combine the world’s two largest aircraft financiers.
Bitcoin traded just below $51,000, hovering in an increasingly narrow trading range as investors look for the next driver to boost cryptocurrencies. The token has failed to hold the $52,000 support level since falling from record highs in late February.
Treasurys broadly tumbled, bringing the 10-year yield to an intraday high of 1.613%. The US dollar strengthened against a basket of Group-of-20 currencies.
Spot gold fell as much as 0.93%, to $1,684.72 per ounce, at intraday lows. The precious metal hadn’t traded below the $1,700 support level since June.
Oil prices erased early gains and dipped after a Saudi Arabian crude terminal was attacked by a drone on Sunday. West Texas Intermediate crude sank as much as 1%, to $65.43 per barrel. Brent crude, oil’s international benchmark, fell 0.97%, to $68.69 per barrel, at intraday lows.