NEW YORK (Reuters) – A string of surprisingly robust economic data boosted investor risk appetite on Monday, which sent the S&P 500 and the Dow to all-time closing highs and boosted cryptocurrency market cap over the $2 trillion hurdle.
Friday’s employment report showed the economy added 916,000 jobs last month, suggesting stimulus and vaccine deployment have jump-started what could be the strongest yearly economic performance in decades.
Enthusiasm over the growing momentum of economic recovery was boosted on Monday with the Institute for Supply Management’s nonmanufacturing PMI report, which showed the pandemic-battered services sector expanded at a record pace in March.
“You’re seeing pretty broad-based strength and that’s a positive for the market,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. “That kind of breadth in the market, it tends to portend advances that have legs.”
That broad-based strength carried over into cryptocurrencies.
Demand for digital cash continues to grow, with market cap hitting a record high of $2 trillion on Monday.
“It’s a risk-on day, and an environment where people are willing to take on risk helps the crytocurrencies,” Carlson added.
The Dow Jones Industrial Average rose 373.98 points, or 1.13%, to 33,527.19, the S&P 500 gained 58.04 points, or 1.44%, to 4,077.91 and the Nasdaq Composite added 225.49 points, or 1.67%, to 13,705.59.
The dollar dipped to a one-week low against a basket of currencies as U.S. stocks rallied, although low liquidity in many parts of the world off for Easter holidays may have exaggerated the move.
The dollar index fell 0.46%, with the euro up 0.4% to $1.1809.
The Japanese yen strengthened 0.48% versus the greenback at 110.20 per dollar, while Sterling was last trading at $1.3903, up 0.54% on the day.
European and Australian stock markets were closed in observance of Easter Monday, while China’s stock market was dark in observance of Tomb Sweeping day.
MSCI’s gauge of stocks across the globe gained 0.97%.
Emerging market stocks rose 0.06%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.03% higher, while Japan’s Nikkei rose 0.79%.
U.S. Treasury yields dipped as investors consolidated their positions, though the uptrend remains intact in the wake of Friday’s payrolls report.
Benchmark 10-year notes last rose 3/32 in price to yield 1.7127%, from 1.72% late on Friday.
The 30-year bond last rose 7/32 in price to yield 2.3541%, from 2.37% late on Friday.
Oil prices fell as increasing OPEC+ supply and rising Iranian output, along with the threat of a new wave of COVID-19 infections, offset hopes for a demand rebound driven by economic revival.
U.S. crude settled at $58.65 per barrel, down 4.6% on the day, while Brent shed 4.18% to end at $62.15 per barrel.
Gold prices edged lower as the safe-haven metal’s luster was dimmed by rising global equity prices.
Spot gold dropped 0.1% to $1,727.98 an ounce. U.S. gold futures settled little changed at $1,728.80.
Reporting by Stephen Culp in New York; Editing by Matthew Lewis
