Stocks rocket higher in broad rally to start March, S&P 500 jumps 2% for best day since June; European stocks rally as U.S. bond yields fall; Stoxx 600 up 1.8%
U.S. stocks jumped sharply on Monday in a broad-based rally as stocks tied to the economic reopening jumped on vaccine optimism, while tech names rebounded from steep losses last week. The 30-stock Dow Jones Industrial Average jumped 700 points, or 2.3%, led by Boeing which climbed 5.8%. The S&P 500 gained 2.6% as all 11 sectors traded in the green. The tech-heavy Nasdaq Composite, which shed 4.9% last week, also popped 2.8% on Monday.
The 10-year U.S. Treasury note yield dipped to a session low of 1.41% Monday before drifting back near the flatline. Yields appeared to be stable at these levels and were off its high of 1.6% last week, which encouraged investors that the rapid rise in rates was at least slowing.
European stocks closed sharply higher on Monday as global markets rallied on falling U.S. Treasury yields and positive news on the coronavirus vaccine front. The pan-European Stoxx 600 ended the session up by 1.8%, with travel and leisure shares climbing 3.2% to lead gains as all sectors and major bourses entered positive territory.
Travel shares were the outperformers Monday, with British Airways parent IAG and cruise operator Carnival climbing around 5% and 7% respectively. At the bottom of the index, Danish insurer Tryg fell 5% after a rights issue.