U.S. stocks climbed on Monday, as gains in technology stocks powered the Nasdaq Composite higher.
The tech-heavy index rose 162.31 points, or 1.2%, to 13377.54, recovering some ground after it declined last week. The S&P 500 gained 27.49, or 0.7%, to 3940.59. The Dow Jones Industrial Average added 103.23, or 0.3% to close at 32731.20.
Investors continued to train their attention on bond markets after a drop in the price of U.S. government debt last week. Ten-year Treasury notes recovered some ground Monday, sending yields down to 1.682%, from 1.729% on Friday. Yields fall when bond prices rise.
Yields have climbed for seven consecutive weeks, denting segments of the stock market that had benefited from several years of low interest rates. Tech stocks, in particular, have suffered from the jump in longer-term government borrowing costs. Future earnings are worth less when bond yields rise.
“There is more upside for U.S. bond yields than there is downside,” said Edward Smith, head of asset allocation research at U.K. investment firm Rathbone Investment Management. Stocks “that delivered exceptional returns last year are probably not going do so well for now,” Mr. Smith added.
