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US Stocks Rally Broadly Monday         03/01 15:57

   Wall Street kicked off March with a broad rally Monday that sent the Dow 
Jones Industrial Average more than 600 points higher and gave the S&P 500 its 
best day in nine months.

   (AP) -- Wall Street kicked off March with a broad rally Monday that sent the 
Dow Jones Industrial Average more than 600 points higher and gave the S&P 500 
its best day in nine months.

   The S&P 500 climbed 2.4%, clawing back nearly all of its losses from last 
week. More than 90% of the stocks in the benchmark index rose, with technology, 
financial and industrial companies powering a big share of the S&P 500's gains. 
Small company stocks also had a strong showing as they continue to outpace the 
broader market this year.

   The wave of buying came as investors welcomed a move lower in long-term 
interest rates as U.S. bond yields declined after surging in recent weeks. The 
yield on the 10-year Treasury fell to 1.43% after reaching its highest level in 
more than a year last week.

   Higher interest rates can slow the economy and discourage borrowing, so Wall 
Street gets jittery when there's a big surge in rates.

   "It moved really fast, the interest rate rise, and now it's sort of leveling 
out so people are relieved that it's not continuing to move up at a really fast 
pace," said Tom Martin, senior portfolio manager with Globalt Investments.

   The S&P 500 rose 90.67 points to 3,901.82, it's biggest single-day gain 
since June 5. The Dow gained 603.14 points, or about 2%, to 31,535.51. The 
tech-heavy Nasdaq composite climbed 396.48 points, or 3%, to 13,588.83.

   Smaller company stocks continued to rally, a sign that investors are feeling 
more confident about the economy's prospects for growth. The Russell 2000 index 
picked up 74.27 points, or 3.4%, to 2,275.32.

   After a strong start to the month, stocks turned lower in the last couple of 
weeks of February after a sudden, rapid rise in bond yields fueled concerns 
about higher inflation. The yield on the 10-year Treasury note climbed as high 
as 1.5% last week, the highest level in more than a year, before easing Friday.

   Bond yields, which can influence rates on mortgages and many other kinds of 
loans, have been steadily climbing this year, as investors bet that vaccination 
efforts and more government stimulus will lead to strong economic growth this 
year. However, along with strong economic growth comes concerns of inflation.

   A handful high-level officials with the Federal Reserve will make speeches 
this week, which will give investors additional information on how concerned 
the nation's central bank is about the economy and inflation. Lael Brainard, an 
advocate for looser monetary policies, will give a monetary policy speech on 
Tuesday and Fed Chair Jerome Powell will give a speech on Thursday.

   Investors also had their eye on Washington Monday as a big economic stimulus 
bill advanced to the Senate. The House of Representatives approved Biden's $1.9 
trillion pandemic relief bill on Friday. The bill infuses cash across the 
struggling economy to individuals, businesses, schools, states and cities 
battered by COVID-19.

   The stimulus bill would include yet another round of one-time payments to 
most Americans, including an expansion of other refundable tax credits like the 
child tax credit, and additional aid to state and local governments to combat 
the pandemic.

   Johnson & Johnson rose 0.5% after the Food and Drug Administration gave 
approval for the company's own coronavirus vaccine, one that does not require 
extensive refrigeration like the ones made by Moderna and Pfizer.

   Technology and financial companies made some of the biggest gains. Apple 
surged 5.4% and Citigroup rose 5.6%. Companies that rely on consumer spending 
also fared well. Etsy jumped 11% and cosmetics retailer Ulta Beauty gained 4.7%.

   Industrial companies, including airlines beaten down by the virus pandemic, 
also helped boost the broader market. American Airlines rose 1.1%.

   Investors will get several big economic reports this week, including 
February's jobs report on Friday. On Monday a report on manufacturing came in 
better than expectations, and new orders also came in better than expected.

 
 
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