Dow climbs 350 points to a record high, S&P 500 jumps more than 1%

U.S. stocks climbed to record highs on Monday as a strong bounce in U.S. job growth last month raised expectations for a swift economic recovery from the pandemic. The Dow Jones Industrial Average rose 370 points to an all-time high. The S&P 500 gained 1.4%, hitting a new intraday record after closing above 4,000 for the first time on Thursday. The tech-heavy Nasdaq Composite also climbed 1.6%.

The Labor Department reported Friday that nonfarm payrolls increased by 916,000 in March, the highest since August 2020, while the unemployment rate fell to 6%. Economists surveyed by Dow Jones were expecting an increase of 675,000 and a jobless rate of 6%.

Tesla shares popped more than 5% as the electric vehicle company reported production and delivery figures that broadly beat expectations. GameStop shares wiped out their earlier losses and turned positive after the video game retailer said it may sell up to $1 billion worth of stock. Classic reopening plays like airlines and cruise operators outperformed. American Airlines and United jumped more than 4% each, while Carnival and Norwegian Cruise Line gained 5.9% and 7.8%, respectively.

Bond yields, whose sudden advance spooked some investors in recent weeks, continued to ease. The 10-year Treasury yield fell slightly to 1.71% on Monday. The stock market is building on its recent strength after President Joe Biden introduced his multitrillion-dollar infrastructure proposal, which focuses on rebuilding roads, bridges and airports, expanding broadband access and boosting electric vehicle use and updating the country’s electric grid. The plan will be funded partly by a hike in the corporate tax rate to 28%.

Treasury Secretary Janet Yellen on Monday pushed for a global minimum corporate tax in an effort to keep companies from relocating to find lower rates. However, Biden’s plan faces opposition among Republicans as the $2 trillion plan includes initiatives that they say extend beyond traditional infrastructure issues.

Dow climbs 350 points to a record high, S&P 500 jumps more than 1%, CNBC, Apr 6