Stocks on Wall Street notched broad gains Monday as investors welcomed more signs that the economy is on the path to recovery,
The S&P 500 rose 1.4% to an all-time high after closing above the 4,000-point mark for the first time last Thursday. The Dow Jones Industrial Average also set a record high, as the market extended its recent run of gains. Technology companies powered much of the rally, which was a reaction to encouraging data on the economy.
The U.S. government reported last week that employers went on a hiring spree in March, adding 916,000 jobs, the most since August. Traders had a delayed reaction to the encouraging jobs report, which was released on Friday when stock trading was closed. Investors were further encouraged by a report Monday showing that the services sector recorded record growth in March as orders, hiring and prices surged.
Both employment and the services industry have been lagging other areas of the economy throughout the recovery. Analysts have said that both need to show signs of growth in order for the recovery to remain on track. COVID-19 and the potential for a spike in cases remains a concern, but the strong rollout of vaccinations is making an eventual return to normal for many people seem clearer and closer.
“The jobs report underscored the rebound in the labor market,” said Quincy Krosby, chief market strategist at Prudential Financial. “The only thing that can stymie this rebound, this recovery, will be that COVID-19 launches another wave.”
The S&P 500 rose 58.04 points to 4,077.91. The benchmark index is coming off two straight weekly gains. The Dow picked up 373.98 points, or 1.1%, to 33,527.19. The Nasdaq composite gained 225.49 points, or 1.7%, to 13,705.59.
Small company stocks, which are outgaining the broader market so far this year, also rose Monday. The Russell 2000 index of smaller companies added 10.98 points, or 0.5%, to 2,264.89. The index is up 14.7% so far this year, while the broader market S&P 500 index is up 8.6%.
The gains were widespread Monday, with nearly every sector closing higher. Companies that stand to benefit from a broader reopening of the economy and economic growth also did well. Norwegian Cruise Line jumped 7.2% for the biggest gain in the S&P 500 as it seeks permission to restart cruises out of U.S. ports in July with a vaccination requirement for passengers and crew members. Rival Carnival rose 4.7% and Royal Caribbean gained 2.9%.
Technology and communications stocks accounted for a big slice of the gains Monday. Apple rose 2.4%, Microsoft gained 2.8% and Facebook climbed 3.4%. Tesla surprised investors with a report that vehicle deliveries doubled during the first quarter. Its shares surged 4.4%.
Energy companies lagged the broader market as crude oil prices fell, including a 4.6% slide in the price of U.S. crude. Occidental Petroleum dropped 7..6% and Marathon Oil slid 5.1%.
Treasury yields were mostly lower. The yield on the 10-year Treasury note, which influences interest rates on mortgages and other consumer loans, slipped to 1.71% from 1.72% last last week.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
