Wall Street’s major indexes have risen, building on last week’s sharp gains after a surprisingly upbeat jobs report raised bets of a swift recovery from a coronavirus-driven downturn.
Among the leading gainers on the S&P 500 were shares of cruise line operators Carnival and Norwegian Cruise Line, up 12 per cent and 13.5 per cent respectively.
The S&P 1500 airlines index jumped 6.8 per cent on Monday.
Planemaker Boeing advanced 11.4 per cent, adding to its 40 per cent surge last week.
Aiding sentiment, major oil producers agreed to extend a deal on record output cuts over the weekend.
The energy sector climbed 3.6 per cent, the most among the 11 major S&P sectors.
Other cyclical sectors including financials and industrials, as well as consumer discretionary, provided the biggest boost to the benchmark index.
The tech-heavy Nasdaq however dipped on Monday, after hitting an intraday record high in the previous session as data showed the unemployment rate in May unexpectedly fell.
Cantor Fitzgerald senior strategist Magdy El Mihdawy said May most likely marked the peak of massive job losses.
“While the recovery in jobs will likely take several years, the market is only focused on the trough,” El Mihdawy said in a note.
The benchmark S&P 500 and the Dow are now 5.5 per cent and 7.4 per cent away from their respective closing highs, after surging more than 45 per cent from their pandemic lows hit on March 23.
The S&P 500 is now about one per cent 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 is expected to be discussed.
It would be the first meeting since April when Fed Chair Jerome Powell said the US economy could feel the weight of the economic shutdown for more than a year.
At 10.04am local time, the Dow Jones Industrial Average was up 254.55 points, or 0.94 per cent, at 27,365.53, the S&P 500 was up 9.33 points, or 0.29 per cent, at 3,203.26. The Nasdaq Composite was down 20.15 points, or 0.21 per cent, at 9,793.93.
Electric carmaker Tesla rose 1.4 per cent after China sales of Shanghai-made Model 3 vehicles more than tripled in May, compared with the previous month.
Advancing issues outnumbered decliners for a 4.09-to-1 ratio on the NYSE and a 2.50-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low, while the Nasdaq recorded 44 new highs and no new low.