Wall Street set to rise after strong jobs data; eyes on services sector survey

(Reuters) – Futures pointed to a higher opening for Wall Street’s indexes on Monday, as investors cheered strong jobs data and waited for a report on the services sector with signals that 2021 could see the best annual economic growth in nearly four decades.

FILE PHOTO: A U.S. flag flies outside The Federal Reserve Bank of New York in New York City, U.S., March 29, 2021. REUTERS/Brendan McDermid/File Photo

An ISM survey for March is likely to show a jump in activity in the services sector, which accounts for more than two-thirds of U.S. economic activity. The data is due at 10 a.m. ET (1400 GMT).

Futures tracking the domestically focused small-cap Russell 2000 index .RTYcv1 jumped 1.2% as Friday’s report showed U.S. nonfarm payrolls surged by 916,000 jobs in March, well above 647,000 forecast by a Reuters poll of economists.

“If you had said a year ago that we would be where we are now, no one would have believed you,” said Thomas Hayes, chairman, Great Hill Capital LLC, New York.

Shares of U.S. banks, industrial and material firms including Bank of America, JPMorgan Chase & Co, Boeing Co and Dow Inc, which are poised to benefit from an improving economy, firmed about 1% each in premarket trading.

With speedy vaccinations and additional government stimulus helping the S&P 500 and the Dow clinch all-time highs, investors will now look to progress on a massive infrastructure plan and the upcoming corporate earnings season for insight on the sustainability of the rally.

“On the one hand, you have concerns about potential (interest) rate rise sooner than promised. At the same time, there is starting to be a little understanding that perhaps earnings estimates are too low,” Hayes added.

The Nasdaq is still about 5% below its record peak from February after as high-growth tech stocks attempted to recover from a pullback on the back of a spike in bond yields.

At 8:31 a.m. ET, Dow E-minis were up 243 points, or 0.74%, S&P 500 E-minis were up 23 points, or 0.57% and Nasdaq 100 E-minis were up 66.25 points, or 0.5%.

U.S. Treasury Secretary Janet Yellen on Monday will call for a global minimum corporate tax rate, in a speech to the Chicago Council on Global Affairs, according to a report by news website Axios.

Tesla Inc was set to add about $50 billion to its market value, as its shares surged after the world’s most valuable automaker posted record deliveries.

GameStop Corp’s shares tumbled 15% after the video game retailer said it may sell up to $1 billion worth of stock as it takes advantage of a dizzying rally in its shares this year on the back of a Reddit-driven retail trading frenzy.

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