U.S. stock futures shot up Sunday due to a positive federal jobs report on Friday. The report smashed expectations as 916,000 was added in March. The U.S. unemployment rate fell to 6% from 6.2%.
In March, job growth was widespread, the Labor Department report showed. Gains in leisure and hospitality, public and private education, as well as construction were leading.
Stock markets were shut for the Good Friday holiday. Wrapping up the holiday-shortened week with gains were the major benchmarks.
The S&P 500 SPX, +1.18%, finished above the 4,000 milestone for the first time. The S&P rose 1.2% for the week, while the Dow Jones Industrial Average DJIA, +0.52%, gained 0.2%. The Nasdaq Composite COMP, +1.76% added 2.6%.
Dow Futures Rise More than 100 Points
Dow Jones Industrial Average futures jumped 136 points in overnight trading. Meanwhile, S&P 500 and Nasdaq 100 futures edged up 0.4% and 0.2%, respectively.
On Sunday, stock futures climbed overnight, with a strong bounce in U.S. job growth last month. Additionally, with accelerating vaccine rollout in the country.
On Friday, the Labor Department reported that nonfarm payrolls increased by 916,000 last month was the highest since August 2020. At the same time, the unemployment rate fell to 6%.
Economists surveyed by Dow Jones expected an increase of 675,000. Moreover, they anticipated a jobless rate of 6%.
This reflects the lifting of restrictions, said Anu Gaggar, senior global investment analyst at Commonwealth Financial Network. It also reflects a ramp-up in vaccinations and boosts provided by the fiscal stimulus. He also said faster jobs and wage growth could put upward pressure on prices and test the Fed’s patience with easy monetary policy.
Wall Street began April with a strong rally. For the first time on Thursday, the S&P 500 jumped more than 1%. It topped the 4,000 threshold and brought its 2021 gains to 7%.
A Multi Trillion-Dollar Infrastructure Proposal
Last week President Joe Biden introduced his multi-trillion-dollar infrastructure proposal. It focuses on rebuilding roads, bridges, and airports.
The plan also focuses on expanding broadband access, boosting electric vehicle use, and updating its electric grid. It will be funded partly by a hike in the corporate tax rate to 28%. Last week’s strength came after this proposal.
However, Republicans oppose it because the $2 trillion plan has initiatives that they say extend beyond traditional infrastructure issues.
On Sunday, Republican Sen. Roy Blunt of Missouri encouraged the Biden administration to pare back the package to roughly $615 billion. Moreover, to concentrate on physical infrastructures such as roads and airports.
Last week, Senate Minority Leader Mitch McConnell, R-Ky., said that Biden’s plan would not receive Republican support. He has vowed to oppose the broader Democratic agenda.