Dow rallies 460 points to close at a record as bond yields fall, House passes new stimulus
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The blue-chip Dow jumped 464.28 points, or 1.5%, to close at a record high of 32,297.02. The S&P 500 added 0.6% to 3,898.81, led by energy and financials. The Nasdaq Composite closed less than 0.1% lower at 13,068.83 after gaining as much as 1.6% earlier in the day. The tech-heavy benchmark enjoyed a 3.7% rally in the previous session for its best day since November.
House Democrats passed a $1.9 trillion coronavirus relief bill Wednesday, sending it to President Joe Biden, who is expected to sign Friday. Biden said checks of up to $1,400 should start going out this month.
Cyclical stocks, or those most sensitive to an economic rebound, led the gains, resuming the trend seen in the past few weeks. The S&P 500 energy sector jumped 2.6%, bringing its 2021 gains to more than 39%. Industrials, materials, and financials all advanced more than 1%.
The small-cap Russell 2000 outperformed with a 1.8% gain as investors piled into beaten-down value stocks.
Meanwhile, tame inflation data out Wednesday eased worries about rising prices that have jolted yields higher and unnerved equity investors. The 10-year Treasury yield fell 2 basis point to 1.52%.
The Labor Department said consumer prices increased 0.4% in February, matching expectations from economists polled by Dow Jones. The Consumer Price Index gained 1.7% on a year-over-year basis, also in line with estimates.
Stock futures rise slightly after Dow sets record high
Stock futures rose modestly on Wednesday evening after the market’s blue-chip average set another record high during regular trading hours.
Futures contracts for the Dow Jones Industrial Average added 72 points, or 0.2%.
Those for the S&P 500 and the Nasdaq 100 rose 0.3% and 0.4%, respectively.
Reference: CNBC
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