By Medha Singh
(Reuters) – U.S. stock index futures jumped more than 1% on Monday as Johnson & Johnson (NYSE:)’s newly approved COVID-19 vaccine and progress in a new $1.9 trillion coronavirus relief package fueled optimism over a swift economic recovery.
Shares of cruise liner and hotel operators, and carriers including Carnival (NYSE:) Corp, Royal Caribbean (NYSE:) Cruises Ltd Hilton, Delta Air Lines Inc (NYSE:) and American Airlines (NASDAQ:) gained between 1% and 5% premarket.
Johnson & Johnson began shipping its single-dose shot vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend.
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.
Sectors that stand to benefit more from an economic rebound outperformed, with Bank of America Corp (NYSE:), Citigroup Inc (NYSE:) and JPMorgan Chase & Co (NYSE:) jumping between 1.3% and 2.2%, and energy firms Chevron Corp (NYSE:) and Exxon Mobil Corp (NYSE:) between 1.6% and 3.5%.
Wall Street’s main indexes ended lower last week, with the Nasdaq suffering its worst week in four months, as a rise in long-dormant yields signaled bonds are more serious investment competition, sparking a pullback in high-valuation tech stocks.
Apple (NASDAQ:), Microsoft Corp (NASDAQ:), Facebook Inc (NASDAQ:) and Amazon.com Inc (NASDAQ:) rebounded between 1.3% and 2.3% on Monday.
At 06:03 a.m. ET, Dow E-minis were up 318 points, or 1.03% and E-minis were up 42.25 points, or 1.11%. E-minis were up 186.75 points, or 1.45%.
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