US open: Stocks extend gains after Senate signs off on Covid relief bill

Wall Street stocks were in the green on Monday after the US Senate passed Joe Biden's $1.9trn Covid relief bill over the weekend.

As of 1545 GMT, the Dow Jones Industrial Average was up 1.27% at 31,897.76, while the S&P 500 was 0.83% firmer at 3,873.95 and the Nasdaq Composite came out the gate 0.47% stronger at 12,980.38.

The Dow Jones opened 401.46 points higher on Monday, extending gains recorded on Friday thanks to some solid non-farm payrolls data.

Optimism surrounding the passing of Biden's stimulus package was initially offset by higher bond yields prior to the open, with the yield on the 10-year Treasury note hovering at just above 1.59% early on Monday.

The Democrat-led House of Representatives was pegged to ink the bill later in the week, with the President expected to sign it into law before unemployment aid programs expire on 14 March.

However, the positive stimulus headlines eventually made an impact on major indices, bolstering stocks reliant on a strong economic recovery, with several retailers, energy companies and banks higher in early trading.

On the macro front, wholesale inventories rose 1.3% in January, according to the Commerce Department, indicating that inventory investment could potentially contribute to economic growth throughout the first quarter. The percentage of wholesale inventories going into the calculation of gross domestic product also increased 1.3%.

In the corporate space, fast-food chain Del Taco and beauty products manufacturer Revlon were both slated to report earnings on Monday.