US equity futures rose on Monday after a strong employment report and before new data expected to show a recovery in the US services sector.
Futures linked to the S&P 500 rose 0.7%, indicating that the general market indicator could rise after the opening bell in New York. Dow Jones Industrial Average futures were up 0.8% and Nasdaq-100 futures were up 0.8%.
Monday’s stock markets have their first chance to react to Friday’s employment report, which showed hiring in the United States increased in March as the economic recovery accelerated. Employers added 916,000 seasonally adjusted jobs in March, the best gain since August. The rapid pace of hiring has bolstered hopes for a stronger economic rebound and has continued to drive investors to stocks hardest hit by the pandemic.
Investors have focused on hiring pace for signs of a strong economic rebound following measures to contain the spread of restricted Covid-19 business activity, prompting some to lay off workers last year. New claims for unemployment benefits have been trending down since then and Friday’s report offered signs that hiring could be picking up.
“It was a very successful report on all fronts, exceeding expectations in a really big way,” said Hani Redha, portfolio manager at PineBridge Investments. “The market has already started to respond. The direction of the actions will be very positive ”.