U.S. stock futures rose sharply in early morning trading on Monday, as Treasury yields retreated from their highs from last week, easing concerns about inflation and that higher rates would undermine equity valuations.
Futures for the Dow Jones Industrial index popped 331 points, or 1.1%, to 31,239.
Futures for the S&P 500 sprang 42 points, or 1.1%, at 3,851.25.
Futures for the NASDAQ Composite progressed 161.5 points, or 1.2%, to 13,072.50.
The Dow forfeited 1.7%, and the S&P 500 lost 2.5%, between Monday and Friday. The technology-heavy NASDAQ dropped more than 4% for the week, suffering its worst one-day selloff since October on Thursday.
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.
There were a broad-based group of stock gainers in the pre-market. Economic reopening plays like Carnival Corp and American Airlines were higher by at least 3%. Tech shares like Apple and Tesla were also higher.
Last week, stocks were pressured by rising interest rates. Higher interest rates can threaten the dominance of equities, as bonds are viewed as less risky, and compress stock valuation by reducing the value of future cash flows.
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 out four millions of doses initially.
The major averages rose for the month of February, bolstered by a strong earnings season, positive news on the vaccine rollout and hopes of anther stimulus package.
The House passed a $1.9-trillion COVID relief bill, the American Rescue Plan Act of 2021, early Saturday. The Senate will now consider the legislation.
The 10-year Treasury yield dipped to 1.44% on Monday, off by two basis points from Friday and down from its recent high of 1.6% on Thursday, which rattled stocks.
February's final read for Markit's U.S. manufacturing purchasing managers' index for February comes out on Monday at 9:45 a.m. ET. Economists polled by Dow Jones are expecting a read of 58.5, the same as December's read of 58.5.
Overseas, In Japan, the Nikkei 225 regained 2.4%, while in Hong Kong, the Hang Seng index picked up 1.6%.
Oil prices acquired 77 cents to $62.27 U.S. a barrel.
Gold prices hiked $7.30 to $1,736.10 U.S.