CORRECTED-US STOCKS-Wall St jumps on J&J vaccine cheer, stimulus optimism

(Corrects headline to say Wall St "jumps", instead of "set for
higher open")
* 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
* Indexes up: Dow 1.63%, S&P 1.49%, Nasdaq 1.47%

By Medha Singh and Shashank Nayar
March 1 (Reuters) - Wall Street's major averages rose 1.5%
on Monday as bond markets calmed after a month-long selloff,
while encouraging updates on the vaccine and stimulus fronts
strengthened bets over a swift economic recovery.
Shares of cruise liner and hotel operators, and carriers
including Carnival Corp CCL.N , Hilton HLT.N , Delta Air Lines
Inc DAL.N and American Airlines AAL.O gained between 1.8%
and 4.6%.
Johnson & Johnson JNJ.N rose 1.8% as 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 on Monday 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 eased to
1.446% after hitting a one-year high of 1.614%. US/
"The angst over rising yields is going to subside with yield
levels clearly calming down while positive vaccine and stimulus
updates will also support (markets) as it's very good news for
the economy and corporate earnings," said Art Hogan, chief
market strategist at National Securities in New York.
All major S&P sectors were higher with those that stand to
benefit more from an economic rebound outperforming. Financials
.SPSY , energy .SPNY and materials .SPLRCM gained between
2% to 3%.
Wall Street's main indexes ended lower last week, with the
Nasdaq suffering its worst week in four months, as a rise in
long-dormant yields signaled bonds are more serious investment
competition, sparking a pullback in high-valuation tech stocks.
Apple AAPL.O , Microsoft Corp MSFT.O , Facebook Inc FB.O
and Amazon.com Inc AMZN.O rebounded between 0.4% and 2% on
Monday.
At 9:40 a.m. ET, the Dow Jones Industrial Average .DJI
rose 503.46 points, or 1.63% , to 31,435.83, the S&P 500 .SPX
gained 56.93 points, or 1.49%, to 3,868.08 and the Nasdaq
Composite .IXIC gained 194.58 points, or 1.47%, to 13,386.92.
Investors will look to ISM's U.S. manufacturing activity
data for February at 10 a.m. ET which is expected to be largely
unchanged from January.
Warren Buffett's enthusiasm for the future of America 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 rose about 2.3%. Perrigo Company Plc PRGO.N jumped about 9% as the consumer
healthcare products company said it would sell its
underperforming generic drugs business for $1.55 billion.
Advancing issues outnumbered decliners by a 9.4-to-1 ratio
on the NYSE and by a 9.2-to-1 ratio on the Nasdaq.
The S&P 500 posted 13 new 52-week highs and no new low,
while the Nasdaq recorded 102 new highs and 12 new lows.