Futures gain after robust monthly jobs report

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

(Reuters) – U.S. stock index futures gained on Monday, as investors returning from a long weekend cheered data showing strongest jobs growth in seven months that could mark the beginning of the best annual economic growth in nearly four decades.

Futures tracking the domestically focused Russell 2000 jumped about 1.5% 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.

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.

The Nasdaq is still about 5% below its record peak from February after high-growth tech stocks were hurt by a spike in bond yields.

Heavyweight Tesla Inc rose 7.6% after the world’s most valuable carmaker posted record deliveries, as solid demand for its electric cars offset the impact of a global shortage of chips.

At 6:18 a.m. ET, Dow E-minis were up 208 points, or 0.63%, S&P 500 E-minis were up 21.5 points, or 0.54% and Nasdaq 100 E-minis were up 63.75 points, or 0.48%.

Investors will get a fresh glimpse of the U.S. economic health in the form of ISM’s survey of 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).

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