U.S. stock futures soared on Monday after a strong job report and ahead of new data that is expected to show a recovery in the US service sector.
Futures contracts linked to the S&P 500 gained 0.7%, indicating that the broad market indicator may rise after the opening bell in New York. Dow Jones Industrial Average futures were up 0.8% and Nasdaq-100 futures were up 0.8%.
Stock markets on Monday will have their first chance to react to Friday’s job report, which showed that US hiring increased in March as the economic recovery accelerated. Employers added 916,000 seasonally adjusted jobs in March, the best gain since August. The accelerated pace of hiring should raise hopes for a stronger economic recovery and continue to direct investors to actions most affected by the pandemic.
Investors focused on the pace of hiring looking for signs of a strong economic recovery, after measures to contain the spread of Covid-19’s restricted business activity, causing some to lay off employees last year. New claims for unemployment insurance have declined since then, and Friday’s report offered signs that hiring may be recovering again.
“It was a highly successful report on all fronts, exceeding expectations in style,” said Hani Redha, portfolio manager at PineBridge Investments. “The market has already started to respond. The inventory direction will be very positive ”.