Dow hits new record as Americans receive latest round of stimulus checks
- US stocks rose at the open after Biden signed the $1.9 trillion stimulus bill into law on Friday.
- Bitcoin pared back gains after touching a record high above $61,000 over the weekend.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
US stocks gained at the open with the Dow at a record high as investors hoped for strong economic growth following President Biden signing the $1.9 trillion stimulus program into law last week.
Many Americans saw $1,400 stimulus checks land in their bank accounts over the weekend, while more direct deposits are expected in the coming weeks.
US bond yields drifted at a 13-month peak of 1.6% on Monday ahead of the FOMC announcing its latest monetary policy decision on Wednesday. As markets continue to worry about the pressures of inflation, Treasury Secretary Janet Yellen said over the weekend that the US inflation risk remains small and "manageable."
"Investor concerns now center on the speed with which the 10-year yield rises and whether the Fed will be forced to raise short-term rates sooner than expected," said Sam Stovall, CFRA chief investment strategist. "We think they won't."
Here's where US indexes stood after the 9:30 a.m. ET open on Monday:
- S&P 500: 3,946.58, up 0.08%
- Dow Jones industrial average: 32,906.56 up 0.39% (127.92 points)
- Nasdaq composite: 13,317.03, down 0.2%
Tencent shares tumbled 3.5% in Hong Kong on Monday, meaning the company's value has fallen more than $65 billion in two days due to concerns that the Chinese authorities will ramp up scrutiny of the tech giant. Chinese regulators fined the do-it-all tech company $77,000 on Friday for not seeking approvals for deals.
Bitcoin pulled back to around $56,289 on Monday after it rose above $61,000 over the weekend. A report said India could fine anyone in the country for even holding such digital assets.
Oil prices fell. West Texas Intermediate crude fell 1.2%, to $64.82 per barrel. Brent crude, oil's international benchmark, decline by 1.16%, to $68.32 per barrel.
Gold jumped 0.5%, to $1,728.90 per ounce.