US STOCKS-Wall Street rallies as Treasury yields stabilize

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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

(Updates with close of trading)
By Noel Randewich
March 1 (Reuters) - Wall Street surged on Monday as bond
markets calmed after a month-long selloff, while another
COVID-19 vaccine getting U.S. approval and fiscal stimulus
bolstered expectations of a swift economic recovery.
Johnson & Johnson JNJ.N shares rose 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 1.449% 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, led by financials .SPSY
and industrials .SPLRCI .
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. Apple was the strongest contributor to
the S&P 500's gains.
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.
Unofficially, the Dow Jones Industrial Average .DJI rose
1.94% to end at 31,531.36 points, while the S&P 500 .SPX
gained 2.37% to 3,901.62.
The Nasdaq Composite .IXIC climbed 3.01% to 13,589.26.
The Russell 2000 index .RUT of smaller companies also
surged, putting its gain in 2021 at around 15%, compared with
the S&P 500's gain of under 5% in the same period.
Shares of Delta Air Lines Inc DAL.N and American Airlines
AAL.O each gained.
Boeing Co BA.N jumped 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 rallied. Perrigo Co Plc PRGO.N jumped as the consumer healthcare
products company said it would sell its underperforming generic
drugs business for $1.55 billion.