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Dow rallies 570 points in big turnaround, Nasdaq ends wild day 1.6% higher

U.S. stocks roared back from a sharp sell-off on Friday as a rally in bond yields eased, while a stronger-than-expected jobs report boosted optimism for a faster economic recovery.

The Dow Jones Industrial Average climbed 572.16 points, or 1.9%, to 31,496.30 after losing as much as 150 points.

The S&P 500 ended the wild session 2% higher at 3,841.94 after shedding 1% earlier.

The Nasdaq Composite advanced 1.6% to 12,920.15 as Apple climbed 1% and Microsoft gained 2%. At its low of the day, the tech-heavy benchmark dropped 2.6%.

The major averages bounced off their lows as bond yields retreated from their session highs. The 10-year Treasury yield eased back to 1.55% after popping above 1.6% to touch a 2021 high following data showing a surge in jobs growth.

The Labor Department on Friday reported that nonfarm payrolls jumped by 379,000 for the month and the unemployment rate fell to 6.2%. That compared to expectations of 210,000 new jobs and the jobless rate to hold steady from the 6.3% rate in January, according to Dow Jones.

Stocks that would benefit from a rapid economic comeback jumped in the wake of the jobs report. The S&P 500 energy sector popped 3.9%, posting its best day since November. Occidental Petroleum jumped 4.5%, while Devon Energy rallied 8.4%. Financials and materials rose more than 2% each.

Dow futures rise more than 100 points after Senate passes $1.9 trillion Covid relief bill

Dow futures rose on Sunday evening as a new stimulus package from Washington headed toward final passage this week.

Futures contracts tied to the Dow Jones Industrial Average added 155 points, or 0.5%. Those for the S&P 500 were up 0.4%, while those for Nasdaq 100 were flat, signaling that a recent underperformance by tech stocks may continue on Monday.

The move in futures came after 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.

Reference: CNBC