At the close of trade, the Dow Jones Industrial Average index advanced 603.14 points, or 1.95%, to 31,535.51. The S&P500 index dropped 90.67 points, or 2.38%, to 3,901.82. The tech-heavy Nasdaq Composite Index added 396.48 points, or 3.01%, to 13,588.83.
Major indices leapt at the open and remained in positive territory the entire day, as investors cheered the emergency use approval of Johnson & Johnson's single-dose Covid-19 vaccine by US regulators over the weekend, giving the nation a third shot to battle the world's worst outbreak.
The market also has been supported by expectations economic aid package after President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate.
Market advance also came as the yield on 10-year Treasury notes, the benchmark borrowing cost in U.S. debt markets, slipped to 1.444% from 1.459% Friday
Better-than-expected economic data is also helping with the good mood on Monday. America's manufacturing sector fared better than predicted in February, according to data from the Institute for Supply Management. The industry's purchasing managers' index, measuring activity, came in at 60.8. Any number above 50 denotes an expansion for the sector.
Johnson & Johnson rose 1.8% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend.
Boeing surged 5.8% after United Airlines announced a contract with the aerospace giant to add 25 more 737 MAX jets in 2023, reflecting optimism about a recovery in the travel industry.
ECONOMIC NEWS: US Construction Spending Spikes 1.7% In January- US construction spending spiked by 1.7% to an annual rate of $1.522 trillion in January after jumping by 1.1% to a revised rate of $1.497 trillion in December, a report released by the Commerce Department on Monday showed. The bigger than expected increase in construction spending came as spending private construction surged up by 1.7% to an annual rate of $1.160 trillion. Spending on residential construction soared by 2.5% to a rate of $713.0 billion, while spending on non-residential construction rose by 0.4% to a rate of $447.0 billion. The report also showed spending on public construction jumped by 1.7% to an annual rate of $361.5 billion, partly reflecting a 5.8% spike in spending on highway construction. Compared to the same month a year ago, total construction spending in January was up by 1%.
US Manufacturing Index Accelerated In February- US manufacturing PMI rose to 60.8 in February from 58.7 in January, with a reading above 50 indicating growth in the manufacturing sector, according to a report released by the Institute for Supply Management on Monday. The bigger than expected increase by the headline index came as the new orders index jumped to 64.8 in February from 61.1 in January.
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