US Stocks Rally; Lifted By Bond Market, Vaccine News

Johnson & Johnson ended up 0.5 percent, but off earlier highs, after 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 US$1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate.

US bond yields eased after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound. The US 10-year treasury yield dipped to 1.449 percent after hitting a one-year high of 1.614 percent.

"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.

Apple, Microsoft, Facebook and Amazon bounced back after a selloff last week in tech stocks. Apple rose over 5 percent and was the strongest contributor to the S&P 500's gains.

In extended trade, Zoom Video Communications jumped 10 percent following its quarterly report.

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.

The Dow Jones Industrial Average surged almost 2 percent to end at 31,535, while the S&P 500 gained 2.4 percent to 3,901, and the Nasdaq Composite jumped 3 percent to 13,588.

Boeing jumped 5.8 percent 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 US and his company Berkshire Hathaway has not been dimmed by the pandemic, according to his annual letter to investors. Berkshire's shares rallied 3.6 percent. (Reuters)