March 1 (Reuters) - Wall Street surged on Monday as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting U.S. approval and fiscal stimulus bolstered expectations of a swift economic recovery.
Johnson & Johnson shares rose as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend.
President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate.
U.S. bond yields eased after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The U.S. 10-year treasury yield dipped to 1.449% after hitting a one-year high of 1.614%.
“The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment,” said Keith Buchanan, portfolio manager at Globalt in Atlanta.
Data showed U.S. manufacturing activity increased to a three-year high in February amid an acceleration in new orders.
All 11 S&P 500 sectors rallied, led by financials and industrials.
Apple Inc, Microsoft Corp, Facebook Inc and Amazon.com Inc bounced back after a selloff last week in tech stocks. Apple was the strongest contributor to the S&P 500’s gains.
The S&P 500’s rebound from its 50-day moving average, touched after Friday’s decline, is a bullish sign that is adding to investors’ enthusiasm, said CFRA Research Chief Investment Strategist Sam Stovall.
“It’s a positive signal, at least in the near term, that the recent weakness has dissipated,” Stovall said.
Unofficially, the Dow Jones Industrial Average rose 1.94% to end at 31,531.36 points, while the S&P 500 gained 2.37% to 3,901.62.
The Nasdaq Composite climbed 3.01% to 13,589.26.
The Russell 2000 index of smaller companies also surged, putting its gain in 2021 at around 15%, compared with the S&P 500’s gain of under 5% in the same period.
Shares of Delta Air Lines Inc and American Airlines each gained.
Boeing Co jumped after United Airlines Holdings Inc ordered 25 new 737 MAX aircraft and moved up the delivery of others as it prepares to replace aging jets and meet expected post-pandemic growth in demand.
Warren Buffett’s enthusiasm for the future of the United States and his company Berkshire Hathaway Inc has not been dimmed by the coronavirus pandemic, according to his annual letter to investors. Berkshire’s shares rallied.
Perrigo Co Plc jumped as the consumer healthcare products company said it would sell its underperforming generic drugs business for $1.55 billion.
(Reporting by Noel Randewich; Additional reporting by Medha Singh and Shashank Nayar in Bengaluru; Editing by Lisa Shumaker)