The S&P 500 bounces 2% in a broad rally as each financial comeback and tech names rise

US stocks rose sharply in a broad-based rally on Monday as economic reopening-related stocks bounced on vaccination optimism while tech names rebounded from heavy losses last week.

The 30 stocks Dow Jones Industrial Average rose 600 points, or 2%, led by Boeing, which rose 5%. The S&P 500 gained 2.3% as all 11 sectors traded in the green. The tech-heavy Nasdaq Composite, which lost 4.9% last week, also fell 2.5% on Monday.

Just under 40 stocks of the S&P 500 were lower that day. And on the big board, the advanced riders were 4.5 to one more numerous than the relegated. Economic reopening games like Carnival and American Airlines were at least 3% higher due to optimism about vaccines. Meanwhile, high-growth technology stocks performed better as rates stabilized. Apple slammed 4.1% and Tesla rose 5%.

The yield on 10-year US Treasury bills fell slightly to 1.42% on Monday, a 2 basis point decrease from Friday and a decrease from its recent high of 1.6% on Thursday. Yields appeared stable at these levels, encouraging investors that the rapid rate hike at least slowed.

“Investors are asking whether interest rates pose a threat to equity valuations. Our answer is emphatically no,” “Goldman Sachs chief US equity strategist David Kostin said in a statement to clients. “Our optimistic US equities view has already embedded expectations of rising interest rates.”

The Centers for Disease Control and Prevention Advisory Board unanimously decided on Sunday to recommend the use of Johnson & Johnson’s one-off Covid-19 vaccine for people aged 18 and over. The company expects to initially ship four million cans.

A sudden spike in the benchmark’s 10-year rate shook stocks last week as rising interest rates jeopardize the relative attractiveness of stocks and can compress stock valuation by diminishing the value of future cash flows. Last week the blue chip Dow and the S&P 500 lost 1.7% and 2.5%, respectively. Tech-heavy Nasdaq suffered its worst sell-off since October on Thursday and had its worst week since trading until Friday’s close.

“Equity investors continue to view the rise in interest rates primarily as ‘a good thing’ rather than a threat, although the tree was mixed up in several stocks and other parts of the market last week,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group . “The advantages of vaccines versus the challenge of higher rates will be the theme this year.”

On the stimulus front, the House passed a $ 1.9 trillion Covid Relief Act, the American Rescue Plan Act of 2021, early Saturday. The Senate will now review the legislation.

Key averages rose in February on the back of a strong earnings season, positive news on the vaccine launch and hopes for another stimulus package.

The Dow was up 3.15% in February for its third positive month in four years. The S&P 500 was up 2.61% and the Nasdaq Composite was up nearly 1% for the fourth positive month in a row.

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