Here are today’s market moves:
S&P 500 down 0.54% to 3,821.22
Dow Jones up 0.97% to 31,801.91
Nasdaq down 2.41% to 12,609.16
Gold: $1,681
Bitcoin: $51,904
US10Y: 1.601%
What Happened?
Stock indexes were mixed on Monday, with the Dow Jones rising to record levels while the Nasdaq tumbled 2.4% as stimulus hopes and improving economic prospects make tech stocks less appealing to investors.
Investors are rotating out of tech stocks and into sectors that are expected to rebound with the economy, such as energy and banks.
Big Tech has been weighing down the S&P 500 as Apple, Microsoft, Amazon, Tesla, and Facebook alone make up a whopping 21% of the S&P 500’s value.
On Saturday, Senate Democrats approved a $1.9 trillion pandemic package that would provide $1,400 checks to most Americans and extend the current $300 weekly federal unemployment payments through September 6.
Tomorrow, the House votes on approving changes made by the Senate.
The additional fiscal spending is projected to accelerate the pace of economic recovery and increase inflation.
The yield on the benchmark 10-year U.S. Treasury note is at 1.601% and rising rapidly – it started the year 2021 at just 0.918%. Rising yields make riskier assets such as technology stocks less attractive.
What Else?
This Week
Monday: Earnings expected from H&R Block.
Tuesday: Earnings expected from Stitch Fix and Dick's Sporting Goods.
Wednesday: Earnings expected from Asana, Bumble, and Campbell Soup; Roblox goes public; U.S. February consumer price index data released.
Thursday: Earnings expected from DocuSign, GoodRx, Oracle, Poshmark, and Ulta; Weekly jobless claims; The European Central Bank holds its monetary policy meeting.
Friday: One year anniversary since the March 2020 Covid-19 lockdowns began in the U.S.