Stock futures were higher early Monday as investors reacted to a sharp surge in US employment growth last month as vaccine adoption accelerated.
Futures on the Dow Jones Industrial Average implied an opening profit of around 200 points. S&P 500 futures and Nasdaq 100 futures also traded in positive territory.
The Labor Department reported Friday that the number of non-farm workers rose by 916,000 in March, the highest since August 2020, while the unemployment rate fell to 6%. Economists polled by Dow Jones expected an increase of 675,000 and an unemployment rate of 6%.
“This reflects the lifting of restrictions, the surge in vaccinations and the boost from fiscal stimulus,” said Anu Gaggar, senior global investment analyst for Commonwealth Financial Network. “Faster jobs and wage growth can put upward pressure on prices and test the Fed’s patience with simple monetary policy.”
Wall Street started April with a strong rally. The S&P 500 rose more than 1% for the first time on Thursday and passed the 4,000 mark, up 7% in 2021.
Last week’s strength came after President Joe Biden unveiled his multi-billion dollar infrastructure proposal, which focuses on rebuilding roads, bridges and airports, expanding broadband access and increasing the use of electric vehicles, and upgrading the country’s electrical grid. The plan is funded in part by increasing the corporate tax rate to 28%.
The plan has met resistance from Republicans, however, as the $ 2 trillion plan includes initiatives that they say go beyond traditional infrastructure problems.
Missouri Republican Senator Roy Blunt on Sunday called on the Biden administration to cut the package back to around $ 615 billion and focus on physical infrastructures like roads and airports.
Senate Minority Chairman Mitch McConnell, R-Ky., Said last week that Biden’s plan would not receive Republican support and vowed to go against the broader Democratic agenda.
In the pandemic area, the US reported another daily record of new Covid vaccinations on Saturday, bringing the weekly average of new vaccinations per day to over 3 million.