Dow rises as stimulus bill nears finish line

The Great Rotation into cyclical stocks drove the Dow to near record levels Monday. But that rotation pulled money out of tech stocks, dragging down the Nasdaq and S&P.

Investors bet on stocks that stand to benefit the most from an economic rebound such as blue chips Disney and Goldman Sachs. This comes as the $1.9 trillion COVID-19 relief bill awaits a final congressional vote after the Senate passed it over the weekend.

But the prospects of more government spending and faster economic growth are also stoking fears of a spike in inflation. That drove the benchmark 10-year Treasury yield to near one-year highs Monday. Tech stocks are particularly sensitive to rising yields, which sent big names like Apple and Alphabet lower.

The Nasdaq closed down nearly 2-and-a-half percent and the S&P by half percent. But the Dow gained 1%.

Phoenix Financial Services Chief Market Analyst Wayne Kaufman: “I think that it's good that that money is not leaving the market. This is very obviously been sector rotation - money not leaving the market.”

Shares of Walt Disney jumped 6%. Disneyland and other theme parks, stadiums, and outdoor entertainment venues could reopen as early as April under new rules set by California health officials.

GE shares rose 4%. Its aircraft leasing unit is in talks with Irish rival AerCap over a possible deal that would create an industry titan.