The Dow Jones Industrial Average and the S&P 500 indexes closed at new all-time highs on Monday, helped by a solid employment report and new data on the US services sector, which has Wall Street bulls betting on a strong US economic recovery.
The Institute for Supply Management reported on Monday that its gauge of US services sector operation rose to 63.7 in March, the highest reading ever and an 8.7% increase over February.
Warming weather, state and local government rollbacks of COVID-19 limits, and more Americans getting vaccinated against the coronavirus have all contributed to the gains.
The good news for the country’s services sector came on the heels of a stellar employment report published on Friday. In March, the US economy added 916,000 jobs, the most 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.”
On Wall Street, the formula helped to lift spirits. The Dow finished the session at 33,527.19, a new high, up more than 373 points or 1.13 percent.
Technology, consumer non-cyclicals, and industrials led the way, with technology, consumer non-cyclicals, and industrials leading the way.
The larger S&P 500 Index, which measures the health of US retirement and college savings plans, rose 1.44 percent to 4,077.91, a new high.
The Nasdaq Composite Index, which is heavily weighted in technology, rose 1.67 percent on the day to 13,705.593.
On Monday, the following stocks made headlines:
Tesla stock increased by more than 4.42 percent after the electric vehicle manufacturer announced record deliveries in the first quarter of this year, exceeding Wall Street’s expectations.
Shares of GameStop Corp, a Reddit-fueled day trader favorite, ended the session down 2.35 percent after the video game retailer said it may sell up to $1 billion worth of new stock.