Stocks have a solid start on Wall Street, led by technology

Stocks were moving higher again in early trading on Wednesday, as stability in the bond market was translating into gains in technology stocks. Investors continue to look toward Washington, where President Joe Biden’s stimulus bill is nearly finalized.

The S&P 500 index rose 0.8% as of 9:50 a.m. Eastern. The Dow Jones Industrial Average was was up 0.9% and the technology-heavy Nasdaq was up 1.5%. The Nasdaq jumped nearly 4% on Tuesday.

Outside of technology stocks, energy companies were also among the biggest gainers, helped by 1% rise in the price of crude oil. Franklin Resources was up 7%, Valero Energy rose 3.4% and Occidental Petroleum was up 2.5%. Bank stocks were also doing well, despite the bond market being stable. The KBW Bank Index of the 24 largest banks was up 1.7%.

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Markets have benefited from bond trading being calmer in the last few days. The yield on the 10-year U.S. Treasury note was unchanged at 1.54% on Wednesday. That yield hit 1.60% late last week, which caused a selloff in stocks.

Bond yields have been rising sharply over the past month due to rising expectations for growth and the inflation that could follow. The fall in bond prices drew investors who didn’t want to pay high prices for stocks, especially tech stocks that looked most expensive.

A measure on inflation released Wednesday was also helping the broader market. U.S. consumer prices increased 0.4% in February, the biggest increase in six months, led by a sharp jump in gasoline prices. The Labor Department said Wednesday that the February rise in its consumer price index followed a 0.3% rise in January and was the largest since a similar 0.4% increase in August. However that figure was in line with economists’ expectations.

Investors are betting the $1.9 trillion in coming government stimulus will help lift the U.S. economy out of its coronavirus-induced malaise. The package set for final approval in the U.S. House on Wednesday provides direct payments of up to $1,400 for most Americans and extends emergency unemployment benefits that help to support consumer spending, the economy’s main engine.