Stocks rallied Monday on Fed Chief Ben Bernanke's call for a second economic stimulus plan, a surprisingly upbeat economic report and signs that the lending market is improving.
In testimony before a House panel, Fed chairman Ben Bernanke urged Congress to consider a second economic stimulus plan to counteract the weakness in the economy.
The Fed chairman noted that "with the economy likely to be weak for several quarters and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate."
Investors seemed to like the notion, with stocks touching highs for the morning in the minutes after the testimony was released.
Also impacting early trade: a surprise jump in the index of leading economic indicators (LEI). September LEI rose 0.3% after falling a revised 0.9% in the previous month.
Treasury prices fell, raising the yield on the 10-year note to 3.93% from 3.92% late Friday. Treasury prices and yields move in opposite directions.
The yield on the 3-month Treasury bill, seen as the safest place to put money in the short term, rose to 0.89% from 0.80% late Friday, suggesting investors are still willing to take a meager return on their money rather than risk the stock market.
However, it was an improvement from last month, when the yield on the 3-month bill skidded to a 68-year low around 0%.
U.S. light crude oil for November delivery rose $1.07 to $72.92 a barrel on the New York Mercantile Exchange after hitting a 13-month low last week.
COMEX gold for December delivery rose $1.40 to $789.10 an ounce.