(Reuters) – Wall Street’s main indexes rose on Monday, building on last week’s sharp gains after a surprisingly upbeat jobs report raised bets of a swift recovery from a coronavirus-driven downturn.
FILE PHOTO: Traders wearing masks work, on the first day of in person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 26, 2020. REUTERS/Brendan McDermid
Beaten-down shares of cruise operators Carnival Corp and Norwegian Cruise Line Holdings Ltd continued to recover and rose 13.1% and 11.4%, respectively. The S&P 1500 airlines index jumped 5.7%.
Planemaker Boeing Co gained 13%, extending its 40% surge last week.
Aiding sentiment, major oil producers agreed to extend a deal on record output cuts over the weekend. The energy sector climbed 2.4%, the most among the 11 major S&P sectors. [O/R]
Other cyclical sectors including financials, and industrials, as well as consumer discretionary provided the biggest boost to the benchmark index.
The tech-heavy Nasdaq closed within striking distance of an all-time closing high in the previous session after a closely-watched monthly jobs report showed an unexpected fall in unemployment rate.
“Most likely, May will have marked the peak of massive job losses,” Magdy El Mihdawy, senior strategist at Cantor Fitzgerald said in a note. “While the recovery in jobs will likely take several years, the market is only focused on the trough.”
The benchmark S&P 500 and the Dow are now 5.5% and 7.4% away from their respective closing highs, after surging more than 45% from their pandemic lows hit on March 23.
The S&P 500 is less than 1% away from recouping all of its losses this year.
The focus this week will be on the Federal Reserve’s two-day policy meeting, ending on Wednesday, where the jobs report will most likely be discussed. It would be the first meeting since April when Fed Chair Jerome Powell said the U.S. economy could feel the weight of the economic shutdown for more than a year.
At 11:27 a.m. ET, the Dow Jones Industrial Average was up 296.53 points, or 1.09%, at 27,407.51, the S&P 500 was up 17.01 points, or 0.53%, at 3,210.94. The Nasdaq Composite was up 32.93 points, or 0.34%, at 9,847.01.
Electric carmaker Tesla Inc rose 4.9% after China sales of Shanghai-made Model 3 vehicles more than tripled in May, compared with the previous month.
Stay-at-home stocks such as Netflix Inc, video conferencing platform Zoom Video Communications Inc and trade and workplace messaging platform Slack Technologies Inc fell between 1.9% and 4.0% after surging during the coronavirus-led lockdowns.
Advancing issues outnumbered decliners for a 3.98-to-1 ratio on the NYSE and a 2.90-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and no new low, while the Nasdaq recorded 58 new highs and no new low.
Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila, Uttaresh.V and Shounak Dasgupta