US STOCKS-Dow, S&P 500 rally to records, boosted by strong economic data

  • Reuters
  • Stock Market News
US STOCKS-Dow, S&P 500 rally to records, boosted by strong economic data
Credit: © Reuters.

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)

* U.S. service sector activity at record high - ISM

* Tesla jumps after posting record deliveries

* Dow up 1.16%, S&P 500 up 1.47%, Nasdaq up 1.74% (New throughout, updates prices, market activity and comments to mid-afternoon; changes byline, adds NEW YORK dateline)

By Chuck Mikolajczak

NEW YORK, April 5 (Reuters) - U.S. stocks rallied on Monday, as a round of strong economic data on the labor market and services sector buoyed investor optimism for the economic reopening and a muted climb in the 10-year U.S. Treasury yield kept inflation worries at bay.

An ISM survey for March showed a measure of U.S. services industry activity jumped to a record high. The data followed Friday's report showing U.S. nonfarm payrolls surged by 916,000 jobs in March, trouncing forecasts. have bet on sectors poised to lead an economic reopening, such as energy .SPNY , financials .SPSY and materials .SPLRCM. . A climbing yield on the 10-year U.S. Treasury note has dented appetite for technology stocks. .SPLRCT

Despite strong economic data, gains were led by sectors that have underperformed recently, including communication services .SPLRCL , consumer discretionary .SPLRCD and tech, as the 10-year yield remained below a 14-month high hit last week. of the fears in March was that the rise in rates meant you need to take multiples down," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.

"It's not the reopening trade at this point, it is higher interest rates are here but not accelerating so the whole economy is being lifted."

The Dow Jones Industrial Average .DJI rose 385.96 points, or 1.16%, to 33,539.17, the S&P 500 .SPX gained 59.11 points, or 1.47%, to 4,078.98 and the Nasdaq Composite .IXIC added 234.78 points, or 1.74%, to 13,714.89.

With speedy vaccinations and additional government stimulus helping the S&P 500 and the Dow clinch all-time highs, focus now turns to progress on a massive infrastructure plan and the upcoming corporate earnings season. tech-heavy Nasdaq is still about 4% below its February high as the recent spike in bond yields spurred inflation concerns and made growth stocks less attractive.

Energy shares were the worst performing sector, following a sharp drop in oil prices. Reopening plays gained, as the S&P 1500 airlines index .SPCOMAIR jumped 3.43% after the U.S. Centers for Disease Control and Prevention said fully vaccinated people can safely travel at "low risk." The agency had held off for weeks on revising guidance that discouraged all non-essential trips. Treasury Secretary Janet Yellen said she was working with G20 countries to agree on a global corporate minimum tax rate to end a "30-year race to the bottom on corporate tax rates." Inc TSLA.O shares climbed 5.70% as one of the biggest boosts to the S&P after the world's most valuable automaker posted record deliveries.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or