The S&P 500 gained 0.78% and the Nasdaq rose 0.75% to a record intraday high.
US stocks closed sharply higher on Friday after the United States added 2.5 million jobs to the wage bill in May, an increase that caught investors and Wall Street economists by surprise.
Last week, the Dow Jones gained 6.8%, the S&P 500 jumped 4.9% and the Nasdaq rose 3.3%, finishing a few points below its closing high on February 19.
“Optimism about a successful transition from a locking economy to a period of more normal economic activity, albeit with some semblance of social distancing, was supported by employment gains of 2.5 million jobs in May, “said Marc Chaikin, founder of Chaikin Analytics, a Philadelphia company. data-driven quantitative investment research.
“While the road to economic recovery will indeed be bumpy, stocks look to the future over 12 to 18 months and see a return to normal,” added Chaikin. The economy and the arrival of cooler weather in the fall. And of course, the development of a safe and effective vaccine is also an important assumption that is part of the historical advance of the market and evolves towards euphoria. ”Crude oil prices fell on Monday, even after the major oil-producing countries extended the drop in production by nearly 10 million barrels of oil per day until the end of July.
West Texas Intermediate crude oil, the US benchmark, fell 3.36% to $ 38.22 a barrel.
Wall Street later this week will focus on the Federal Reserve, which is meeting Tuesday and Wednesday.
The Fed is expected to keep rates close to zero and no major policy decision is expected from the US central bank. However, Fed observers will be curious to see if the May employment data has changed the agency’s economic projections.
Pharmacist Gilead Sciences ((BROWN) – Get a report – who recently made the headlines after obtaining government authorization to use remdesivir as a potential treatment for coronaviruses – was allegedly targeted by AstraZeneca ((AZN) – Get a report for a possible merger agreement.
The Bloomberg report, which cited people familiar with the talks, said the merger would have created the largest healthcare deal to date. The market capitalization of the merged companies would be approximately $ 232 billion.