Wall Street Closes at New Record Highs on Economic Data

The New York Stock Exchange (NYSE) closed higher on Monday, with main indices reaching all-time record highs, supported by positive economic data.

In the first session of the week, the Dow Jones Industrial Average and the S&P 500 indices closed at new record levels, due to the improved investors’ sentiment that came on the back of positive economic data that signaled indicators for the recovery from the coronavirus pandemic.

The improved risk appetite was evident by the decline of the U.S. Dollar (USD) and Treasury bond yields on Monday.

Wall Street investors are betting on the sectors that are set to benefit the most from the reopening of the U.S. economy as it recovers from the impact of the pandemic, especially with wider distributions of the coronavirus vaccines.

The energy sector, as well as financial and materials stocks are among the top performing sectors this year, while the technology sector was impacted by the recent surges in the benchmark U.S. Treasury bond yields to their highest level in about 14 months.

The Dow Jones Industrial Average gained 373.98 points, or 1.13%, to finish Monday’s trading session at 33,527.19 points, while the S&P 500 gained 58.04 points, or 1.44%, to finish at 4,077.91 points. Both indices settled at new all-time record highs.

Meanwhile, the Nasdaq Composite Index rose by 225.49 points, or 1.67%, to close at 13,705.59 points.

The recently approved $1.9 trillion economic stimulus package is providing support for various sectors and the economy at large, which is reflecting positively on the performance of Wall Street stocks.

In addition, plans by the administration of President Joe Biden to invest trillions in renovating infrastructure projects across the states and create millions of decent paying jobs are supporting the outlook for economic recovery, as many sectors, such as construction and renewable energy sources are expected to benefit from the ambitious plan.

However, the market is seeing some concerns about the expected tax hike to fund the large spending plans.

Today, the energy sector was among the top losing market indicators due to a strong declin in crude oil prices.

On the other hand, airlines registered large gains, on expectations of reopening the economy and easing restrictions on international travel with more people being vaccinated.

The ISM Non-Manufacturing Index rose to a reading of 63.7 last month, its highest level on record, according to data by the Institute for Supply Management (ISM) released earlier today.

Furthermore, the seasonally adjusted final IHS Markit U.S. Services PMI Business Activity Index registered 60.4 in March, up from 59.8 in February, recording an improved reading compared with a flash estimate of 60.0.

Today’s data followed Friday’s jobs report that indicated that the U.S. economy added 916,000 jobs during March.