Dow futures jump 200 points after blowout jobs report
Chef Eric Miggins prepares a take away order at the Penn Tavern on Penn Ave in West Lawn. Wednesday afternoon, March 10, 2021.
Ben Hasty | MediaNews Group | Read Eagle via Getty Images
Stock futures rose in night trading on Sunday as investors welcomed a sharp surge in US employment growth last month amid accelerated adoption of vaccines.
The futures on the Dow Jones Industrial Average rose 136 points. The S&P 500 futures rose 0.4% and the Nasdaq 100 futures rose 0.2%.
The Labor Department reported Friday that the number of non-farm workers rose by 916,000 in March, the highest since August 2020, while the unemployment rate fell to 6%. Economists polled by Dow Jones expected an increase of 675,000 and an unemployment rate of 6%.
“This reflects the lifting of restrictions, the surge in vaccinations and the boost from fiscal stimulus,” said Anu Gaggar, senior global investment analyst for Commonwealth Financial Network. “Faster jobs and wage growth can put upward pressure on prices and test the Fed’s patience with simple monetary policy.”
Wall Street started April with a strong rally. The S&P 500 rose more than 1% for the first time on Thursday and passed the 4,000 mark, up 7% in 2021.
Last week’s strength came after President Joe Biden unveiled his multi-billion dollar infrastructure proposal, which focuses on rebuilding roads, bridges and airports, expanding broadband access and increasing the use of electric vehicles, and upgrading the country’s electrical grid. The plan will be funded in part by increasing the corporate tax rate to 28%.
However, the plan has met resistance from Republicans as the $ 2 trillion plan includes initiatives that they say go beyond traditional infrastructure problems.
Missouri Republican Senator Roy Blunt on Sunday called on the Biden administration to scale back the package to around $ 615 billion and focus on physical infrastructure like roads and airports.
Senate Minority Chairman Mitch McConnell, R-Ky., Said last week that Biden’s plan would not receive Republican support and vowed to go against the broader Democratic agenda.
In the pandemic area, the US reported another daily record of new Covid vaccinations on Saturday, bringing the weekly average of new vaccinations per day to over 3 million.