March 8 Reuters The Dow climbed on Monday, led by stocks poised to benefit the most from an economic rebound as the 1.9 trillion COVID19 relief bill awaited a final congressional vote this week, but heavyweight techrelated stocks sold off in a big downturn.
After the legislation won U.S. Senate approval on Saturday, President Joe Biden said he hoped for a quick passage of the revised coronavirus relief package by the Democratcontrolled House of Representatives so he could sign it and send 1,400 direct payments to Americans.
Prospects of more government spending and faster economic growth have stoked fears of a spike in inflation, sending the benchmark 10year Treasury yield to near oneyear highs.
U.S. Treasury Secretary Janet Yellen, however, said on Monday the package would fuel a very strong U.S. recovery and she did not expect the economy to run too hot because of the increased spending.
In the SP 500, the financial sector was the biggest boost, hitting a record as higher interest rates and a steeper yield curve helped banks. Industrials were right behind, also reaching a record high, while the materials sector neared an alltime peak. The technology sector was deepest in the red.
As bonds yields have moved higher, concerns about equity valuations for growthoriented stocks and tech stocks specifically have weighed on the Nasdaq relentlessly the last three weeks, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles….