US stocks rallied Monday after a strong jobs report and new data showed a recovery in the services sector.
The S&P 500 gained 1.2%, putting it on track for a new record after the broad index hit an all-time high last week.
The Dow Jones Industrial Average was up 1%, while the tech-heavy Nasdaq Composite added 1.2%.
With the US stock market closing on Friday, it was the market’s first reaction to the latest jobs report, which showed that the number of US hires increased in March as the economic recovery accelerated. Employers added 916,000 jobs seasonally in March, their best addition since August. The fast pace of hiring is likely to bolster hopes for a stronger economic recovery and continue to propel investors towards the stocks hardest hit by the pandemic.
Investors have focused on the hiring pace for signs of an economic recovery following measures to stem the spread of Covid-19 limited business activity, which caused some to lay off workers last year. The number of new claims for unemployment benefits has since declined, and Friday’s report showed signs that the number of new hires is picking up again.