US equities opened higher on Monday after a strong job report and ahead of fresh data expected to recover in the US services sector.
The Dow Jones industrial average rose 267 points, or 0.8%, shortly after the opening clock. The S&P 500 added 0.7% and the Nasdaq Composite also climbed 0.7%.
The stock markets on Monday had their first chance to respond to the jobs report on Friday, which showed that US rents increased in March as the economic recovery accelerated. Employers added a seasonally adjusted 916,000 jobs in March, the best profit since August. The rapid pace of appointment has boosted hopes of a stronger economic downturn and propelled investors to stocks that were hit hardest by the pandemic.
Investors have focused on the pace of hiring for signs of a strong economic recovery following measures to curb the spread of Covid-19 restricted business operations, which caused some employees to lay off last year. New applications for unemployment benefits have declined since then, and Friday’s report shows signs that rents may increase again.
“It was a striking report in all areas, far exceeding expectations,” said Hani Redha, PineBridge Investments’ portfolio manager. “The market has already started to react. The direction of stocks will be very positive. ”