Automated translation by Reuters using machine learning and generative AI, please refer to the following warning: https://bit.ly/rtrsauto
* Rising indices: Dow 0.36%, S&P 500 0.45%, Nasdaq 0.54%
* Job creations in March exceed expectations, unemployment rate decreases
* ISM non-manufacturing PMI index slows down, prices paid reach their highest level in 3 and a half years
* Soleno Therapeutics soars following Neurocrine’s acquisition agreement for $2.9 billion
(Updates with closing prices)
by Stephen Culp and Purvi Agarwal
U.S. stocks advanced on Monday, with investors seeking signs of progress towards a ceasefire agreement between the United States and Iran, and assessing escalating threats from President Donald Trump if Iran does not reopen the Strait of Hormuz.
Iran rejected the U.S. proposal for an immediate ceasefire, instead emphasizing a permanent end to the war, according to the Islamic Republic News Agency (IRNA). This rejection follows Trump’s increasingly bellicose ultimatums, who promised to “rain hell” on Iran if the crucial chokepoint of the Strait of Hormuz remained closed to tanker traffic.
Investors were somewhat reassured by reports that the United States, Iran, and a group of regional mediators were continuing discussions on the terms of a potential ceasefire.
The three major U.S. indices made slight gains, with the S&P 500 and Nasdaq on track for their fourth consecutive day of gains, their longest winning streak since January.
“The reality is that we are, hopefully, coming closer to some kind of resolution,” said Ryan Detrick, Chief Market Strategist at Carson Group in Omaha. “Unfortunately, it won’t be today. But I think investors feel the two parties are talking more.”
“Daily volatility and headlines can be quite nauseating,” Detrick added. “But there is a sense of optimism in the air with earnings season starting soon, and American companies are once again poised to show strong, solid performances, likely justifying what we still believe to be a bullish market.”
The American-Israeli war against Iran has shaken markets for just over a month. The surge in crude oil prices has fueled inflation fears and stocks have declined. Despite the S&P on track for its fourth consecutive session of gains, the flagship index remains down 3.9% since the start of the conflict.
Economic data released on Monday showed that the U.S. service sector grew at a slower pace than expected in March, even as employment contracted in the sector and prices paid, an inflation indicator, reached their highest level since October 2022.
The highly anticipated March employment report, released on Good Friday, showed the U.S. economy added 178,000 jobs last month, nearly triple the consensus of 60,000, a positive surprise tempered by a revision of job losses in February, which increased from 92,000 to 133,000.
The Dow Jones Industrial Average gained 165.21 points, or 0.36%, to 46,669.88, the S&P 500 gained 29.33 points, or 0.45%, to 6,612.02, and the Nasdaq Composite gained 117.16 points, or 0.54%, to 21,996.34.
Among the 11 major sectors of the S&P 500, communication services saw the biggest percentage gains, while utilities lagged behind.
Travel/leisure, aerospace and defense, and homebuilding stocks significantly outperformed.
Shares of Soleno Therapeutics surged 32.3% after Neurocrine Biosciences agreed to acquire the rare disease drug maker for $2.9 billion in cash.
The rise in bitcoin prices boosted U.S.-listed shares of cryptocurrency-related companies Coinbase and MicroStrategy by 1.9% and 6.6%, respectively.
Advancing stocks outnumbered declining ones by a ratio of 1.93 to 1 on the NYSE. There were 88 new highs and 54 new lows on the NYSE.
On the Nasdaq, 2,918 stocks advanced and 1,788 declined, with advancers outnumbering decliners by a ratio of 1.63 to 1.
The S&P 500 index hit seven new 52-week highs and two new lows, while the Nasdaq Composite index reached 61 new highs and 70 new lows.
Trading volume on U.S. exchanges was 14.78 billion shares, compared to the 19.51 billion average for the preceding 20 trading days.
