Tech stocks slide as Senate’s stimulus approval boosts Treasury yields

Tech stocks slide as Senate’s stimulus approval boosts Treasury yields

US stocks wavered on Monday as the Senate's approval of a massive new relief package revived the value rotation.

Senators voted along party lines on Saturday to push a $1.9 trillion stimulus plan closer to President Joe Biden's desk. The package is expected to receive a final House vote on Tuesday, giving Democrats time to enact a supplement to federal unemployment benefits before the current boost expires on March 14. The package also includes $1,400 direct payments, aid for state and local governments, and funding for vaccine distribution.

The package is widely expected to accelerate economic growth and lift inflation. The bill's Senate vote renewed investors' moves out of growth stocks and Treasurys and into riskier sectors more likely to benefit from broad reopening. Rising yields cut into tech stocks' appeal on Monday and cyclical stocks gained.

Here's where US indexes stood shortly after the 9:30 a.m. ET market open on Monday:

The choppy session followed a broad market upswing to close out last week. Stocks rose on Friday as stronger-than-expected February payroll additions led investors to buy the dip in tech stocks. Government data also showed the unemployment rate falling to 6.2%, though other gauges of labor-market health remain at worrying highs.

Tesla tumbled