As investors attempt to gauge the path of inflation, U.S. stocks climbed on Monday, with both the NASDAQ and S&P 500 rallying more than 1% as a pullback in U.S. Treasury yields helped lift stocks in sectors such as technology.
Inflation concerns cooled for the time being as investors may be starting to view President’s Joe Biden’s infrastructure bill as likely to be smaller, or unable to provide as big an economic boost, even after being pared down in size on Friday.
“The reason interest rates are coming down is because many on Wall Street are questioning how successful President Biden will be in pushing through that stimulus package, or pushing through as big an infrastructure package as he is hoping,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
“Yields are coming down because inflation worries are coming down and as a result we are finding that tech stocks are becoming a bit more attractive once again.”
Tech giants Apple and Microsoft, each up about 2% on the day, were the biggest boosts to the benchmark S&P index.
MacDailyNews Take: Apple remains woefully undervalued.