US STOCKS-S&P 500 rallies, on track for best one-day rise since June

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* 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: Dow +2.30%, S&P 500 +2.55%, Nasdaq +2.80%

(Adds detail on market, comment from strategist)
By Noel Randewich
March 1 (Reuters) - The S&P 500 surged on Monday and was
headed for its biggest one-day gain since June as bond markets
calmed after a month-long selloff, while developments on
COVID-19 vaccines and fiscal stimulus bolstered expectations of
a swift economic recovery.
Johnson & Johnson JNJ.N rose almost 1% 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 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 dipped to 1.453% after
hitting a one-year high of 1.614%. US/
"The sentiment is risk-on with more investors showing
interest towards cyclical stocks while a positive vaccination
drive and better macro numbers are hinting towards a better
growth environment," said Keith Buchanan, portfolio manager at
Globalt in Atlanta.
Data showed U.S. manufacturing activity increased to a
three-year high in February amid an acceleration in new orders.
All 11 S&P 500 sectors rallied more than 1%, led by
financials .SPSY and industrials .SPLRCI , both up over 3%.
Apple Inc AAPL.O , Microsoft Corp MSFT.O , Facebook Inc
FB.O and Amazon.com Inc AMZN.O bounced back after a selloff
last week in tech stocks.
The S&P 500's rebound from its 50-day moving average,
touched after Friday's decline, is a bullish sign that is adding
to investors' enthusiasm, said CFRA Research Chief Investment
Strategist Sam Stovall.
"It's a positive signal, at least in the near term, that the
recent weakness has dissipated," Stovall said.
In afternoon trading, the Dow Jones Industrial Average
.DJI was up 2.3% at 31,643.25 points, while the S&P 500 .SPX
gained 2.55% to 3,908.39.
The Nasdaq Composite .IXIC added 2.8% to 13,561.22.
Shares of Delta Air Lines Inc DAL.N and American Airlines
AAL.O each gained about 1%.
Boeing Co BA.N jumped 5.9% after United Airlines Holdings
Inc UAL.O ordered 25 new 737 MAX aircraft and moved up the
delivery of others as it prepares to replace aging jets and meet
expected post-pandemic growth in demand. Warren Buffett's enthusiasm for the future of the United
States 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 3.8%. Perrigo Co Plc PRGO.N jumped 7.5% as the consumer
healthcare products company said it would sell its
underperforming generic drugs business for $1.55 billion.
Advancing issues outnumbered declining ones on the NYSE by a
4.50-to-1 ratio; on Nasdaq, a 4.60-to-1 ratio favored advancers.
The S&P 500 posted 47 new 52-week highs and no new lows; the
Nasdaq Composite recorded 172 new highs and 16 new lows.