U.S. stock markets closed higher on Monday on the back of strong performance by large-cap technology stocks as bond yields fell. Moreover, investors’ sentiment was also boosted by positive news on the COVID-19 vaccine front. All the three major stock indexes ended the day in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3%, or 103.23 points, closing at 32,731.20, snapping its two-day losing streak. Notably, 20 components of the 30-stock index ended in green while 9 finished the day in red and 1 remained unchanged.
The tech-heavy Nasdaq Composite closed the day at 13,377.54, up 1.2% or 162.31 points, continuing its two-day winning streak, on the back of strong performance by large-cap technology stocks. The S&P 500 gained 0.7%, closing the day at 3,940.59, reversing its losses from previous two sessions. The Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) advanced 1.8% and 0.7%, respectively. Notably, six out of eleven sectors of the benchmark index closed in the positive zone and five in red.
The fear-gauge CBOE Volatility Index (VIX) was down 9.9% to 18.88. A total of 10.91 billion shares were traded on Monday, lower than the last 20-session average of 14.3 billion. Decliners outnumbered advancers on the NYSE by a 1.18-to-1 ratio. On Nasdaq, a 1.25-to-1 ratio favored declining issues.
Technology Stocks Move Wall Street Higher
Wall Street moved higher on Monday as high-flying technology stocks led the rally amid falling bond yields. Notably, the 10-year Treasury yield fell to around 1.682% on Monday, from 1.729% on Friday. Consequently, shares of heavyweight technology names like Apple Inc.
AAPL
, Microsoft Corp.
MSFT
and Facebook, Inc.
FB
rose 2.8%, 2.5% and 1.2%, respectively. Notably, Apple and Microsoft carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Positive News on the COVID-19 Vaccine Front
Investors’ sentiment was also boosted by positive news on the COVID-19 vaccine front. Notably, the findings of final-stage U.S. clinical trials data showed that the vaccine developed by AstraZeneca PLC
AZN
and the University of Oxford is 79% effective in preventing symptomatic illness and is 100% effective against severe disease and hospitalization.
Moreover, the trial indicated that there is no increased risk of blood clots which had led to temporary suspension of the vaccine in parts of Europe. Notably, AstraZeneca said that it will continue further analysis of the data and prepare for the submission of primary analysis to the U.S. FDA for emergency use authorization in the following weeks. Consequently, shares of AstraZeneca gained 4%.
Economic Data
The National Association of Realtors reported that existing home sales in February fell 6.6% to a seasonally adjusted annual rate of 6.22 million units, compared to 6.69 million in January and missing the consensus estimate of 6.47 million.
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The Hottest Tech Mega-Trend of All
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