S&P 500 closes at new record following big job gains in March

Stocks closed broadly higher on Wall Street Monday as the economy showed more signs that it’s continuing to recover.

The US 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 on Monday showing that the services sector recorded record growth in March as orders, hiring and prices surged.

The S&P 500 rose 1.4 per cent to 4077.91, another record high after closing above the 4000-point mark for the first time on Thursday. The Dow Jones Industrial Average rose 373.98 points, or 1.1 per cent, to 33,527.19 and the Nasdaq was 1.7 per cent higher.

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.

Tesla also surprised investors with a report that vehicle deliveries doubled during the first quarter.

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Technology stocks powered much of the gains on Monday. Apple rose 2.5 per cent and Microsoft gained 2.9 per cent. Tesla climbed 4.4 per cent following its encouraging report on vehicle deliveries.

The electric car maker delivered nearly 185,000 vehicles in the first quarter, beating Wall Street forecasts.

Treasury yields were mostly lower. The yield on the 10-year US Treasury note, which influences interest rates on mortgages and other consumer loans, slipped to 1.71 per cent from 1.72 per cent last last week.