Stocks traded higher Monday after hiring in the U.S. surged in March as employers added the most workers to payrolls in seven months.
The Dow Jones Industrial Average rose 284 points, or 0.86%, to 33,437, the S&P 500 was up 1% and the Nasdaq jumped 1.04%.
The Dow and S&P 500 set record intraday highs.
The U.S. economy added far more new jobs than expected in March as hiring begins to return to its pre-pandemic pace amid accelerating vaccine rollouts and multiple state reopenings.
The Labor Department said 916,000 new jobs were created last month, well above forecasts of about 675,000. The unemployment rate fell to 6%.
With the economy rolling into a full-fledged hiring boom this spring, and consumers fueled by the recent $1.9 trillion COVID relief bill, fixed income markets increasingly have been growing concerned over the near-term chances of faster inflation.
Anu Gaggar, senior global investment analyst for Commonwealth Financial Network, said faster growth in jobs and wages “can have an upward pressure on prices and test the (Federal Reserve’s) patience with easy monetary policy.”
The Fed has pledged to keep interest rates near zero through 2023 but continued strong employment growth has many questioning whether the Fed can maintain that stance.
The yield on the benchmark 10-year Treasury steadied Monday at 1.718%.
The S&P 500 jumped 1.18% on Thursday to almost 4,020, establishing an all-time closing high and crossing 4,000 for the first time after President Joe Biden unveiled a $2.25 trillion infrastructure spending plan. Stock markets in the U.S. were closed for Good Friday.
Oil prices in the U.S. declined 2.12% to $60.15 a barrel after OPEC+ leaders decided to gradually boost crude production from May through July.
Wedbush analysts upgraded shares of Tesla to outperform and boosted the stock’s price target to $1,000 from $950 after the electric vehicle maker reported stronger-than-expected vehicle deliveries for the first quarter, paced by its mid-priced Model 3 sedan and China demand for its new Model Y.
“In our opinion the 1Q delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla’s Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway,” wrote analysts Dan Ives and Strecker Backe in a research note.
The stock was rising 4.84% on Monday to $693.77.
This article was originally published by TheStreet.