Shares in the US opened on Monday following a strong employment report and new data expected to recover in the US services sector.
The Dow Jones industrial average rose 267 points, or 0.8%, shortly after the opening bell. The S&P 500 added 0.7%, and the Nasdaq Composite also rose 0.7%.
Monday’s stock markets have their first chance to react to Friday’s job report, which showed US employment rose in March as economic recovery accelerated. Employers added 916,000 seasonally adjusted jobs in March, the best gain in August. The rapid pace of employment has boosted hopes for a stronger economic recovery and continued to drive investors to the worst-hit pandemic.
Investors focused on the pace of employment for signs of strong economic recovery after measures to limit the spread of restricted business activity Covid-19, leading to some layoffs last year. New applications for unemployment benefits have fallen since then, and Friday’s report showed signs that employment could resume.
“It was a successful report on all fronts, which exceeded expectations in a very big way,” said Hani Redha, portfolio manager at PineBridge Investments. “The market has already begun to respond. The direction of stocks will be very positive. ”