Big job gains in March boost stocks

Stocks on Wall Street notched broad gains Monday as investors welcomed more signs that the economy is on the path to recovery.

The Standard & Poor’s 500 index rose 1.4% to an alltime high after closing above the 4,000-point mark for the first time Thursday. The Dow Jones industrial average also set a record high, as the market extended its recent run of gains. Technology companies powered much of the rally, which was a reaction to encouraging data on the economy.

The U.S. 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 Friday, when stock trading was closed. Investors were further encouraged by a report Monday showing that the services sector saw record growth in March as orders, hiring and prices surged.

Employment and the services industry have been lagging behind 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. The potential for another surge in COVID-19 cases remains a concern, but the strong rollout of vaccinations is making a return to normal for many people seem clearer and closer.

The S&P 500 rose 58.04 points to 4,077.91. The Dow picked up 373.98 points, or 1.1%, to 33,527.19. The Nasdaq composite gained 225.49 points, or 1.7%, to 13,705.59.

The Russell 2000 index of smaller companies added 10.98 points, or 0.5%, to 2,264.89. It is up 14.7% this year, while the broader S&P 500 index is up 8.6%.

The gains were widespread Monday, with nearly every sector closing higher.

Companies that stand to benefit from a broader reopening of the economy and economic growth also did well. Norwegian Cruise Line jumped 7.2% for the biggest gain in the S&P 500. Carnival rose 4.7% and Royal Caribbean gained 2.9%.

Tech and communications accounted for a big slice of the gains. Apple rose 2.4%, Microsoft gained 2.8% and Facebook climbed 3.4%. Tesla surprised investors with a report that vehicle deliveries doubled during the first quarter. Its shares surged 4.4%.

Energy firms lagged behind the broader market as crude oil prices fell, including a 4.6% slide in the price of U.S. crude. Occidental Petroleum dropped 7.6% and Marathon Oil slid 5.1%.

GameStop fell 2.4% after announcing a stock sale.

Treasury yields were mostly lower. The yield on the 10-year Treasury note slipped to 1.71% from 1.72% last week.