Stocks are bouncing back big time Monday, with big tech and big travel poised for the biggest gains. This is what happens when everything comes up roses following a brutal week of selling.
Investors can thank two headlines for the better tone. First,
Johnson & Johnson’s
vaccine, which requires just one dose and can be stored without extreme refrigeration, has been given emergency use authorization. Second, bond yields are falling.
The vaccine was big news for travel stocks. American Airlines shares are up almost 4% in premarket trading. Stock in cruise operator
is up almost 6%. More vaccinations should mean more travel.
The drop in bond yields—the 10-year Treasury has fallen 0.02 percentage point to 1.43%—is great news for big tech. Higher yields cause investors to question the sky-high valuations of growth stocks, and that’s what investors did last week.
Whether tech’s big rebound continues remains to be seen. Those stocks can be hurt by optimism about the U.S. economy, and investors will get releases on housing, manufacturing, and the job market this week.
A full reopening is still months away, but if the data are good, don’t be surprised by renewed tech weakness.
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Fauci Urges Americans to Take Johnson & Johnson Vaccine Despite Concerns
Dr. Anthony Fauci, President Joe Biden’s chief medical advisor, urged Americans to take the newly approved Johnson & Johnson coronavirus vaccine, while cautioning that “we’re not victorious yet” against the virus despite rapidly falling infection rates and three approved vaccines in the U.S.
- “If you go to a place and you have J&J, and that’s the one that’s…