Treasury yields spiked on Monday, pushing the tech-heavy Nasdaq down more than 10 percent from its February 12 closing high after news that a $1.9 trillion stimulus package was reaching its final approval stages.
READ MORE: Asian Stocks Recover Losses As Equity Futures Strengthen
U.S. 10-year Treasury bond yields eased to 1.54% after hovering near 13-month highs of 1.613% in the prior session. Longer-dated yields have jumped over the last month as investors price in a faster-than-expected economic rebound and higher inflation.
“Tech stocks are overdue for some kind of bounce after the downfall they have had so far with most investors maintaining a positive outlook (on them) in the medium to longer-term,” said Michael Sheldon, chief investment officer at RDM Financial in Westport, Connecticut. “Potential headwind for the market is if interest rates rise further from this point over the short period… since they have risen too fast in too little time.”
At 18:03 pm WAT, the Dow Jones Industrial Average rose 299.38 points, or 0.94 percent, to 32,103.12, the S&P 500 gained 72.94 points, or 1.91 percent, to 3,894.21 and the Nasdaq Composite surged 485.56 points, or 3.64 percent, to 13,067.72.
Among the biggest boosts to the S&P 500 and the Nasdaq were Tesla Inc (+14.72 %), Apple Inc (+4.05%), Amazon.com Inc (+4.10%), Facebook Inc (+3.78%), and Microsoft Corp(+3.0%) which have jumped after sharp losses in recent weeks as a rise in yields raised concerns over their high valuations.