Record rise since June
US stock indices jumped in trading on Monday, with the Standard Poor's 500 having its best session in about nine months amid a halt in rising government bond yields.
The Dow Jones Industrial Average rose 603.14 points (1.95 per cent) to 31535.51 by market close, the biggest one-day gain since 9 November.
The Standard Poor's 500 rose 90.67 points (2.38%) to 3,901.82, its strongest one-day gain since June 5.
The Nasdaq Composite added 396.48 points (3.01%) to 13588.83 points, posting its strongest session gain since November 4.
The unexpected acceleration of the US Treasury bond sell-off last week caused their yields to spike, putting pressure on the stock market and especially technology stocks. On Monday, ten-year US Treasuries yields held below 1.5% after jumping to 1.6% on Thursday, the highest level in more than a year.
The slowdown in yields has helped reinvigorate investor demand for equities, notes The Wall Street Journal.
The ISM Manufacturing index rose to 60.8 points in February from 58.7 points in the previous month.
Perrigo Co (NYSE:PRGO) shares. PLC jumped 4.7% on Monday. The pharmaceutical company projected earnings and revenue growth in fiscal 2021 and also announced the sale of its Generic Rx Pharmaceuticals unit to Altaris Capital Partners for about $1.55 billion.
Johnson&Johnson (NYSE:JNJ)'s stock price rose 0.5%.
Twitter Inc. gained 0.7%.
Royal Caribbean Cruises' capitalisation fell 2.1%. The U.S. cruise operator will conduct an additional $1.5 billion issuance. The proceeds from the offering will be used for general corporate purposes, the company said.
The market value of Herbalife Nutrition Ltd. rose 1%. The dietary supplement maker plans to change its board of directors after investor Carl Icahn sold more than half of his stake in the company, according to a WSJ report.