Stock Futures Benefited from the Latest Jobs Report

Millions of people across the U.S. lost their jobs due to the coronavirus pandemic, and it is not surprising that investors are closely monitoring the labor market. The stock futures strengthened their positions on Monday, as investors reacted to the jobs report.

According to the Labor Department, the nonfarm payrolls increased by 916,000 last month. It is the best result since August 2020. Furthermore, the unemployment rate declined to 6%. The latest result reflects the lifting of restrictions, ramp-up vaccinations, and boost provided by the fiscal stimulus.

On Monday, futures on the Dow Jones Industrial Average suggested an opening gain of about 200 points. Moreover, S&P 500 futures and Nasdaq 100 futures traded in positive industry.

It is a good period for Wall Street as it kicked off the month of April with a strong rally. For instance, the S&P 500 added more than 1% to top the 4,000 threshold for the first time on Thursday, bringing its 2021 gains to 7%.

Stock futures and Joe Biden’s interesting plan

Joe Biden’s multitrillion-dollar infrastructure proposal helped to boost U.S. stocks. His plan focuses on rebuilding roads, bridges, as well as airports. Moreover, Biden wants to expand broadband access and make eclectic cars more popular. He also wants to update the country’s electric grid. Biden’s plan will be funded partly by a hike in the corporate tax rate to 28%.

Republicans do not support his multitrillion-dollar proposal. According to Republicans, the $2 trillion plan includes initiatives that extend beyond traditional infrastructure issues. Moreover, Republican Senator Roy Blunt urged the Biden administration to reduce the package to roughly $615 billion and concentrate on physical infrastructure such as roads and airports.

He is the only famous Republican who criticized Biden’s proposal. Senate Minority Leader Mitch McConnell stated that Biden’s plan would not receive Republican support.

Last week, more precisely on Saturday the U.S. reported another daily record of new Covid vaccinations. This result shows that governmental and private organizations are working hard to vaccinate as many people as possible.

The latest jobs report helped to boost stock futures, and this fact underlines the importance of the labor market to investors. The unemployment rate continues to decline, but it won’t be easy to return to pre-coronavirus results. Biden’s plan has the potential to create thousands of jobs all over the country. Investors will continue to monitor the situation and most likely stock futures will reach even better results.