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* U.S. bond market rout eases
* J&J's COVID-19 vaccine to be available in 1-2 days
* Cyclical energy, banks, materials stocks jump
(Updates with details after the close)
By Noel Randewich
March 1 (Reuters) - The S&P 500 surged on Monday in its
strongest one-day gain since June as bond markets calmed after a
month-long selloff, while another COVID-19 vaccine getting U.S.
approval and fiscal stimulus bolstered expectations of a swift
economic recovery.
Johnson & Johnson JNJ.N ended up 0.5%, but off earlier
highs, after it began shipping its single-dose 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.
U.S. bond yields eased after a swift rise last month on
expectations of accelerated inflation due to bets on an economic
rebound. The U.S. 10-year treasury yield dipped to 1.449% after
hitting a one-year high of 1.614%. US/
"The sentiment is risk-on with more investors showing
interest towards cyclical stocks while a positive vaccination
drive and better macro numbers are hinting towards a better
growth environment," said Keith Buchanan, portfolio manager at
Globalt in Atlanta.
Data showed U.S. manufacturing activity increased to a
three-year high in February amid an acceleration in new orders.
All 11 S&P 500 sectors rallied, led by financials .SPSY
and technology .SPLRCT .
Apple Inc AAPL.O , Microsoft Corp MSFT.O , Facebook Inc
FB.O and Amazon.com Inc AMZN.O bounced back after a selloff
last week in tech stocks. Apple rose over 5% and was the
strongest contributor to the S&P 500's gains.
In extended trade, Zoom Video Communications ZM.O jumped
10% following its quarterly report. The S&P 500's rebound from its 50-day moving average,
touched after Friday's decline, is a bullish sign that is adding
to investors' enthusiasm, said CFRA Research Chief Investment
Strategist Sam Stovall.
"It's a positive signal, at least in the near term, that the
recent weakness has dissipated," Stovall said.
The Dow Jones Industrial Average .DJI surged 1.95% to end
at 31,535.51 points, while the S&P 500 .SPX gained 2.38% to
3,901.82.
The Nasdaq Composite .IXIC jumped 3.01% to 13,588.83.
The Russell 2000 index .RUT of smaller companies surged
3.37%, putting its gain in 2021 at over 15%, compared with the
S&P 500's gain of about 4% in the same period.
Boeing Co BA.N jumped 5.8% after United Airlines Holdings
Inc UAL.O ordered 25 new 737 MAX aircraft and moved up the
delivery of others as it prepares to replace aging jets and meet
expected post-pandemic growth in demand. Warren Buffett's enthusiasm for the future of the United
States and his company Berkshire Hathaway Inc BRKa.N has not
been dimmed by the coronavirus pandemic, according to his annual
letter to investors. Berkshire's shares rallied 3.6%.
Perrigo Co Plc PRGO.N jumped 4.7% as the consumer
healthcare products company said it would sell its
underperforming generic drugs business for $1.55 billion.
Advancing issues outnumbered declining ones on the NYSE by a
3.81-to-1 ratio; on Nasdaq, a 4.29-to-1 ratio favored advancers.
The S&P 500 posted 48 new 52-week highs and no new lows; the
Nasdaq Composite recorded 197 new highs and 17 new lows.
Volume on U.S. exchanges was 12.1 billion shares, compared
with the 15.1 billion average for the full session over the last
20 trading days.