U.S. stocks climbed to record highs on Monday as a strong bounce in U.S. job growth and solid data in the services sector raised expectations for a swift economic recovery from the pandemic.
The Dow Jones Industrials screamed higher 373.98 points, or 1.1%, to conclude Monday at another all-time high of 33,527.19.
The S&P 500 picked up 58.04 points, or 1.4%, to 4,076.99, hitting a new record after closing above 4,000 for the first time on Thursday.
The NASDAQ Composite climbed 225.48 points, or 1.7%, to 13,705.59.
Tesla shares popped more than 4% as the electric vehicle company reported production and delivery figures that broadly beat expectations.
GameStop shares cut their double-digit losses and closed down about 2% after the video game retailer said it may sell up to $1 billion worth of stock.
Classic reopening plays like airlines and cruise operators outperformed. Delta Airlines and United jumped more than 2% each, while Carnival advanced 4.7%, and Norwegian Cruise Line gained 7.2%.
The U.S. Labor Department reported Friday that non-farm payrolls increased by 916,000 in March, the highest since last August, while the unemployment rate fell to 6%. Economists surveyed by Dow Jones were expecting an increase of 675,000 and a jobless rate of 6%.
Meanwhile, a measure of U.S. services industry activity soared to a record high in March. The Institute for Supply Management’s non-manufacturing activity index jumped to a reading of 63.7 last month, the highest level in the survey’s history.
The stock market is building on its recent strength after President Joe Biden introduced his multi-trillion-dollar infrastructure proposal, which focuses on rebuilding roads, bridges and airports, expanding broadband access and boosting electric vehicle use and updating the country’s electric grid. The plan will be funded partly by a hike in the corporate tax rate to 28%.
Treasury Secretary Janet Yellen on Monday will reportedly push for a global minimum tax in an effort to keep companies from relocating to find lower rates. Yellen will address a Chicago Council on Global Affairs conference this morning.
However, Biden’s plan faces opposition among Republicans as the $2-trillion plan includes initiatives that they say extend beyond traditional infrastructure issues.
Republican Sen. Roy Blunt of Missouri on Sunday urged the Biden administration to pare back the package to roughly $615 billion and concentrate on physical infrastructure such as roads and airports.
Senate Minority Leader Mitch McConnell said last week that Biden’s plan would not receive Republican support and vowed to oppose the broader Democratic agenda.
On the pandemic front, the U.S. reported another daily record of new COVID vaccinations Saturday, pushing the weekly average of new shots per day above three million.
Prices for 10-Year Treasurys slumped, raising yields to 1.71% from Thursday’s 1.68%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.67 to $58.78 U.S. a barrel.
Gold prices gained 50 cents to $1,728.90.