The Dow Jones Industrial Average and the broader S&P 500 were both in record territory on Monday as a blockbuster jobs report and a positive read on the US services sector boosted bets on a robust economic recovery.
Two of three major stock indexes in the United States hit new record highs on Monday, propelled by a blockbuster jobs report and fresh data on the US services sectors that have bulls betting on a strong US economic recovery.
The Institute for Supply Management said on Monday that its gauge of US services sector activity jumped to 63.7 in March – the highest reading ever and a full 8.7 percentage points higher than February.
The gains come against a backdrop of warming temperatures, rollbacks of COVID-19 restrictions by state and local governments and more Americans getting vaccinated against the coronavirus.
The good news on the country’s services sector also followed on the heels of Friday’s stellar jobs report. The US economy added 916,000 jobs in March – the biggest gain in seven months.
“Vigorous services activity in March sets the stage for robust expansion in Q2,” wrote Oxford Economics lead US economist Oren Klachkin in a note to clients on Monday. “All the right pieces for a faster services recovery – expanded vaccine eligibility, reopenings, and historic fiscal expansion – are falling into place.”
That recipe helped boost spirits on Wall Street. In early afternoon trading in New York, the Dow Jones Industrial Average was up more than 452 points or 1.36 percent at 33,608.08 – placing the index firmly in record territory.
The broader S&P 500 Index, a proxy for the health of US retirement and college savings plans, was up 1.57 percent at 4,083.12 – also a record after the index closed above 4,000 for the first time on Thursday.
Tesla shares were also firmly back in favour after the electric vehicle maker reported record deliveries in the first quarter of this year that beat Wall Street’s expectations.
Shares of Tesla were up more than 4 percent in early afternoon trading in New York.