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The Dow Jones Industrial Index (Dow 30) – the 30-share, large-cap benchmark of Wall Street -- closed on historic high levels on Monday, on the back of strong macro numbers coming in from the world’s largest economy.
The benchmark closed the day’s trade at 33,527.19, up 373.98 points (1.13%).
Similarly, 100-share Nasdaq 100 rallied to 13,598.16, up 268.65 (2.02%). Nasdaq, however, is still 4.01% below its historic high levels. Growth tech stocks are trying rebound after being battered in the early month of March.
The markets rallied on the back of strong macro numbers reported by the US, which has been worst hit by the ongoing coronavirus pandemic. On Monday, the Institute for Supply Management (ISM) survey revealed that non-manufacturing activity index in the US reached 63.7 last month, up from the 59.0 level clocked in February 2021.
Lifted by the warmer weather, the non-manufacturing activity in the US has received a boost from the vaccination drive and a massive US$ 1.9 trillion stimulus package rolled out by the Biden Administration.
The data follows a recent report showing a jump by 916,000 jobs in the non-farm sector – a surge that was 50% higher than what the markets were anticipating.
After the bear run in the month of March 2020, the markets have rallied like never before in the US and most other parts of the world. The Dow 30 has soared by 54.95% from 1 April 2020 till now, while Nasdaq 100 has surged by 79.2%. The rally can be attributed to various factors, primarily liquidity injection in the markets through the stimulus packages worth over US$ 6 trillion, globally.
Meanwhile, the Australian market also opened in green following a long weekend. ASX 200 was trading at 6,897.50, up 68.10 points (1%) at the time of filing this copy. Neighbouring New Zealand markets opened in black with Dow Jones NZ trading 0.27% up at the time of filing this copy.
Other Asian markets were also trading in green at the time of filing this story: Japan’s Nikkei 225 was up 0.11% and South Korean KOPSI was up 0.43%. However, the pain point is likely to come from India, as the second wave of coronavirus pandemic has hit the world’s fifth largest economy badly.
On Sunday, India reported a daily surge of over 100,000 for the first time –second country only to the US. As a result, Indian benchmarks, NSE Nifty and BSE Sensex, on Monday, corrected by 1.54% and 1.74%, respectively.