Investors came into the session ready to go after a wonderful weekend of better weather, blossoming flowers, singing birds, increased travel and folks flocking to theme parks and movie theaters.
Then, moments into the session, this headline appeared (below), and the session picked up momentum.
CDC says fully vaccinated Americans can travel safely, but still should wear masks
So, the market was already off to a great start when another data point was released. The ISM Service release added even more fuel to the rally.
At 63.7, the March read was the highest ever, up from 55.3 in February, and zooming past the consensus of 59.0.
- Business activity 69.4 from 55.5
- New orders 67.2 from 51.9
- Employment 57.2 from 52.7
- Prices 74.0 from 71.8
According to the ISM, all of this was done against capacity restraints, material shortages, weather issues, logistics and human resources challenges.
All 18 service industries reported growth in March.
To see the chart, click here.
What’s intriguing about all of this is the market is much higher on very strong economic data. I mentioned this morning that fear had gone away, which includes fear the Fed will not be able to keep its promise of holding rates down a few more years.