U.S. stocks surged Monday as a strong jobs report and new data showing a rebound in the services sector provided fresh evidence that the economy is recovering from the Covid-19 pandemic.
The Dow Jones Industrial Average gained 402 points, or 1.2%, while the broad-based S&P 500 climbed 1.4%. Both indexes are on track to close at fresh records.
The technology-heavy Nasdaq Composite advanced 1.3%.
With the U.S. stock market closed Friday, it was the market’s first reaction to the latest jobs report, which showed that U.S. hiring surged in March as the economic recovery accelerated. Employers added a seasonally adjusted 916,000 jobs in March, the best gain since August. The fast pace of hiring has bolstered hopes for a stronger economic rebound, and it could continue driving investors to stocks hardest hit by the pandemic.
Many businesses laid off workers last years as state and local governments imposed measures to contain the spread of Covid-19. New applications for unemployment benefits have trended down since then and Friday’s report offered signs that hiring may be picking up again.
