Dow climbs 250 points amid continued economic recovery hopes

• US stocks rose on Monday as economic recovery hopes led to rallies in airlines, cruise lines, and retail.
• The gains continue a rally from Friday that came after the better-than-expected May jobs report provided investors an encouraging sign.
• Oil producers jumped following OPEC's agreement to extend historic production cuts.
• Read more on Business Insider.

US stocks rose on Monday, as economic recovery hopes extended the prior week's rally. Airlines, cruise lines, and retail were among the leaders.

Investors were encouraged on Friday after a much stronger-than-expected May jobs report shocked economists who expected greater fallout from the coronavirus. New data showed that unemployment actually declined, despite forecasts for an increase. US employers also added 2.5 million jobs, bucking forecasts for deeper losses.

Here's where US indexes stood at 11:50 a.m. ET on Monday:

• S&P 500: 3,208.77, up 0.47%
• Dow Jones industrial average: 27,360.85, up 0.8% (249 points)
• Nasdaq composite: 9,836.16, up 0.21%

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The rally brings the S&P 500 to the precipice of erasing losses for the year. The index is now just 1% lower than where it traded at the start of 2020.

"This time it is not only being led by Big Tech and biotech firms, but also the most beaten-up sectors such as airlines and leisure are surging," said Hussein Sayed, chief market strategist at FXTM.

He continued: "That is what you'd like to see as a signal of a broader economic recovery, but the big question remains - are we truly witnessing a broader economic recovery or is it a false signal from equity markets?"

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Next, investors will be watching the Federal Reserve's policy meeting this week for more future guidance. There's also a chance that the central bank could target yield-curve control.

Over the weekend, the Organization of Petroleum Exporting Countries agreed to extend their earlier historic production cuts through the end of next month. West Texas Intermediate crude slumped as much as 2.7%, to $38.50 per barrel on Monday. International benchmark Brent crude declined 2%, to $41.47 per barrel, at intraday lows.

Oil producers Marathon Oil jumped nearly 16% Monday on the news, while Occidental Petroleum jumped nearly 15% at intraday highs.

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