S&P futures surged and most Asian stocks climbed (Europe remains closed for Easter holiday) as investors digested Friday’s unexpectedly strong jobs report which showed the strongest jobs growth in seven months and could mark the beginning of the best annual economic growth in nearly four decades. Bond yields rose modestly after Friday’s spike, while the dollar and gold were both unchanged.
At 730am, Dow E-minis were up 226 points, or 0.68%, S&P 500 E-minis were up 23 points, or 0.57% and Nasdaq 100 E-minis were up 59.75 points, or 0.45%.
Futures tracking the small-cap, 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. Treasuries pulled back from a selloff last week, with the benchmark 10-year yield steadying around 1.71%. The pound appreciated to a two-week high against the dollar as Prime Minister Boris Johnson pushed ahead with plans to reopen the economy.
Shares of U.S. banks, industrial and material firms including Bank of America, JPMorgan, Boeing and Dow which are poised to benefit from an improving economy, firmed about 1% each in premarket trading.
In notable pre-market moves, Tesla soared 7.6%, adding $50BN to its market cap, 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. Tesla delivered 184,800 vehicles globally during the first quarter of 2021, above estimates of 177,822 vehicles, according to Refinitiv data. Tesla’s shares were at $711 before the bell, while other EV makers, including NIO Inc, Workhorse Group and Xpeng Inc were up about 3%.