U.S. stocks closed higher on Monday, rebounding from initial losses on the disappointing jobs report as weak data renewed hopes of a delayed increase in interest rates.
“When (jobs) misses by so much and there’s negative adjustments to the months that preceded it there’s a concern at the back of your mind It’s a moronic (plunge) into stocks (that say) because the economy is bad the Fed has to hold off,” said Robert Pavlik, chief market strategist at Boston Private Wealth. “I’d rather be in a car that’s moving forward.”
The major averages turned positive in early trade as the morning’s service sector and manufacturing data continued to indicate moderate growth. Traders took the lack of significant growth as a sign of further dovish policy from the Federal Reserve.
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