Investors are welcoming the month of March with a massive rally.
In early trading Monday, the market surged. By late morning, the Dow traded up 693 points at 31,621 for a gain of 2.23%. The S&P 500 and Nasdaq also traded higher by more than 2%.
Investors are reacting to a slight decline in the yield on the 10-year Treasury note. The yield notched lower on Monday to 1.42%, down from roughly 1.5% Friday. A lower yield signals less fear of inflation — and less inflation signals more liquidity since the Federal Reserve is less likely to raise rates.
With a stimulus package from the Federal Government on the way, some investors are worried that the additional influx of cash into the economy will result in inflationary pressures.
Shares of Johnson & Johnson were up 1.6% after the company announced that its Covid-19 vaccine authorized the use of the single-dose shot on Saturday.
Shares of Exxon Mobil were up 4.6% after the company announced that it had added two new board members. The company has been under pressure from activist investors in recent months.