U.S. stocks rose sharply on Monday, as Treasury yields retreated from last week's highs, easing concerns about inflation and that higher rates would undermine equity valuations.
The Dow Jones Industrials made up for what it lost last week, gaining 633.9 points, or 2.1%, to begin a new week and new month at 31,566.27, led by Boeing which climbed 6.8%.
The S&P 500 recouped 74.98 points, or 2%, to 3,886.13, as all 11 sectors traded in the green
The NASDAQ Composite recovered from its recent slump, picking up 72.91 points to 13,192.34.
The sudden spike in the benchmark yield rattled stocks last week as rising rates can threaten the relative appeal of equities and compress stock valuation by reducing the value of future cash flows.
Economic reopening plays like Carnival and American Airlines were higher by at least 3% amid optimism on vaccines and economic reopening. Meanwhile, high-growth tech shares outperformed as rates fell. Apple and Tesla both rose 3%.
Boosting sentiment on the vaccine front, the Centers for Disease Control and Prevention advisory panel voted unanimously Sunday to recommend the use of Johnson & Johnson's one-shot COVID-19 vaccine for people 18 years of age and older. The company expects to ship four millions doses initially.
Last week, the blue-chip Dow and S&P 500 lost 1.7% and 2.5%, respectively. The technology-heavy NASDAQ dropped more than 4% during the same period, after suffering its worst one-day selloff since October on Thursday. Technology companies rely on being able to borrow money for a low rate in order to invest in future growth.
The major averages rose for the month of February, bolstered by a strong earnings season, positive news on the vaccine rollout and hopes of another stimulus package.
The Dow gained 3.2% for its third positive month in four in February. The S&P 500 gained 2.6% and the NASDAQ gained nearly 1% for its fourth positive month in a row.
Prices for 10-Year Treasurys dropped a bit, boosting yields to 1.42% from Friday's 1.41%. Treasury prices and yields move in opposite directions.
Oil prices regrouped 40 cents to $61.90 U.S. a barrel.
Gold prices jumped $8.60 to $1,737.40