On Sunday evening, Dow futures rose as a new stimulus package from Washington moved closer to final approval this week.
Futures contracts tied to the Dow Jones Industrial Average gained 101 points or 0.3%. The S&P 500 gained 0.2%, while the Nasdaq 100 dropped 0.3%, indicating that tech stocks’ recent underperformance could continue on Monday.
The move came after the Senate passed a $1.9 trillion economic relief and stimulus bill on Saturday, paving the way for an extension of unemployment benefits and a new round of stimulus checks and aid for state and local governments.
Another round of government spending could have an impact on the U.S. Treasury market, with the yield on the benchmark 10-year note rising sharply in recent weeks. On Friday, Treasury yields rose as high as 1.62%, compared with less than 1% at the start of the year. On Sunday night, it was trading at about 1.59%.
The rapid swings in bonds have also unnerved equity investors, causing stocks with higher valuations to weaken.
The stock market is coming off an afternoon rally on Friday that took some of the sting out of a rough week for high-flying momentum names. The tech-heavy Nasdaq down 2.1% so far this week, while the S&P 500 gained 0.8%. The Dow, which relies more on cyclical stocks, rose 1.8%.