Wall Street gains on strong services sector data, China-led recovery hopes
(Reuters) - Wall Street’s major indexes were up more than 1% on Monday as data showing unexpected growth in the U.S. services sector last month and a revival in China’s economy boosted optimism, helping investors look past a surge in new coronavirus cases at home.
The ISM’s non-manufacturing activity index jumped to 57.1 in June, almost returning to pre-pandemic levels, but a recent surge in COVID-19 cases in the United States has threatened the emerging recovery.
Investors also bet on an improving Chinese economy and its impact on the global growth as the yuan led commodity currencies higher against the dollar. Earlier, Chinese stocks jumped more than 5%.
A slew of upbeat U.S. data, including a record rise in monthly payrolls, has powered the Nasdaq to all-time highs and has helped the S&P 500 and the Dow shed much of their losses. The S&P 500 is roughly 6% below its February peak, while the Dow is about 11% below its record high from that month.