Dow up 1.16%, Nasdaq 500 up 1.47% and S& P 500 up 1.74% New York, April 5- U.S. stocks rallied on Monday as a round of strong economic data on the labor market and services sector lured investor optimism for the economic reopening and a muted climb in the 10 year Treasury yield kept inflation worries at bay.
An ISM survey for March showed a measure of the US services industry activity was already high.
The data follows Friday's report showing nonfarm payrolls in March surged by 916,000 jobs, underlining the forecasts. Investors have bet on sectors poised to lead an economic reopening, such as energy, financials and materials.
A 10 year yield on the$ 100 note has depressed investor appetite for technology stocks. Despite strong economic data, gains were driven by sectors that have recently underperformed, including communication services consumer discretionary and tech, as the 10-year yield hit last week below a 14 month high.
One of the concerns in March was that the rise in rates meant you needed to take multiples down, said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management in Seattle.
It's not the reopening trade at this point, it is higher interest rates are here but not accelerating so the whole economy is lifting.
The Dow Jones Industrial Average increased 385.96 points, or 1.16%, to 33,539.
17, the S& P 500 gained 59.11 points, or 1.47%, to 4,078.
98 and the Nasdaq Composite added 234.78 points, or 1.74%, to 13,714.
89 With rapid vaccinations and additional government stimulus helping the Dow and the S& P 500 clinch all-time highs, the focus now turns to progress on a massive infrastructure plan and the upcoming corporate earnings season.
The tech-heavy Nasdaq is still about 4% below its February high as the recent spike in bond yields has made inflation worries less attractive and made growth stocks more attractive. The energy shares were the worst performing sectors in the world following a sharp drop in oil prices. Reopening plays gained as the S& P 1500 airlines index climbed 3.43% after the US Centers for Disease Control and Prevention said vaccinated people can safely travel at low risk.
The agency had locked off on revising direction for weeks on non-essential trips, which discouraged all travels.
Government department of Treasury Janet Yellen said she was working with G20 countries to agree on a corporate minimum tax rate in order to end a 30 year race to the bottom on corporate tax rates. The shares of Tesla Inc. climbed as one of the biggest boosts to S& P after the world's most valuable automaker posted record deliveries.
Then there are the questions about what was the answer?