Stocks climbed early in trading Monday as investors waited for a slate of Federal Reserve speakers and data on the manufacturing sector.
The S&P 500 rose around 1.3% and the Nasdaq Index rose 1.6% after a brush week for technology stocks. The Dow Jones industrial average added 397 points, or 1.3%.
The broadest improvement came as yield on 10-year Finance notes, the benchmark borrowing cost in global debt markets, fell to 1.43% from 1.459% on Friday. Yields fall as bond prices rise.
Stocks, and in particular shares of technical firms, have been driven by volatile movements in government bond markets in recent trading sessions. Lighthouse raised higher yields last week questioning the long-term expectation of low interest rates, which had been the basis for last year’s successful rally in stocks.
Monday’s decline in yields helped revive investor demand for stocks. But money managers remained on the lookout for other spikes that could spur a new trend in share prices. Investors are parsing a speech with Fed governor Lael Brainard to see if the central bank will push back against higher yields.