U.S. stocks surged Monday as a weekslong advance in government bond yields stalled, easing investors’ jitters over rising interest rates.
The Dow Jones Industrial Average soared 643 points, or 2.1%, in afternoon trading, putting the index on track for its biggest one-day increase since November. The S&P 500 climbed 2.3%, while the technology-heavy Nasdaq Composite was up 2.5%.
The gains marked a robust rebound after all three indexes declined last week, weighed down by losses among tech stocks.
Monday’s advance came as the yield on 10-year Treasury notes, the benchmark borrowing cost in U.S. debt markets, slipped to 1.446% from 1.459% Friday. Yields fall when bond prices rise.
Stocks, and particularly shares of tech companies, have been buffeted by volatile moves in government-bond markets in recent trading sessions. A long period of low interest rates underpinned the stock market’s boom over the past year, by making it less attractive for investors to put money in bonds. Last week’s climb in yields called that into question.