After adjustments, the Dow Jones closed up 1.13% to 33,527.19 points, the S&P 500 rose 1.44% to 4,077.91 points and the Nasdaq advanced 1.67% to 13,705.59 points .
The indexes have been operating since the opening, driven by the better-than-expected report of the American payroll – which was released last Friday, on a closed market day in the USA -, which indicated that the American private sector generated 916 thousand new ones jobs in March, recording the best result since August and almost double the 468 thousand jobs created in February.
Today, the indices received another boost with the release of the purchasing managers index (PMI) of the services sector of the Institute for Supply Management (ISM), which rose to 63.7 points in March, from 55.7 points from the February reading, which represents its best reading ever recorded, beating the previous record, 60.9 points, recorded in October 2018 with ease.
Anthony Nieves, chairman of the ISM services research committee, points out that PMI started to be registered in 2008, but even considering the data collected earlier, the highest reading for PMI would have been in August 1997, when it would have been calculated in just 62 points, based on the data that make up the index.
According to James Knightley, chief international economist at ING, the record service activity record “suggests that the creation of 916,000 jobs on Friday will likely be exceeded in April, with more spending and more movement of people demanding more jobs to meet demand “. The economist said in a note that he expects monthly job creation to rise from one million by June.
Driven by optimism with the American economic recovery, the gains in New York were quite wide, with emphasis on the gains of the sectors of discretionary consumption (+ 2.28%), communication services (+ 2.27%) and technology (+ 2.02%), which led the gains in the S&P 500. The only sector of the broad index to close in fall was the energy sector, which fell 2.41%, pressured by the sharp fall in oil prices.
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