US STOCKS-Dow, S&P 500 rally to records, boosted by strong economic data

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* U.S. service sector activity at record high - ISM
* Tesla jumps after posting record deliveries
* Dow up 1.16%, S&P 500 up 1.47%, Nasdaq up 1.74%

(New throughout, updates prices, market activity and comments
to mid-afternoon; changes byline, adds NEW YORK dateline)
By Chuck Mikolajczak
NEW YORK, April 5 (Reuters) - U.S. stocks rallied on Monday,
as a round of strong economic data on the labor market and
services sector buoyed investor optimism for the economic
reopening and a muted climb in the 10-year U.S. Treasury yield
kept inflation worries at bay.
An ISM survey for March showed a measure of U.S. services
industry activity jumped to a record high. The data followed
Friday's report showing U.S. nonfarm payrolls surged by 916,000
jobs in March, trouncing forecasts.
Investors have bet on sectors poised to lead an economic
reopening, such as energy .SPNY , financials .SPSY and
materials .SPLRCM. . A climbing yield on the 10-year U.S.
Treasury note has dented appetite for technology stocks.
.SPLRCT
Despite strong economic data, gains were led by sectors that
have underperformed recently, including communication services
.SPLRCL , consumer discretionary .SPLRCD and tech, as the
10-year yield remained below a 14-month high hit last week.

"One of the fears in March was that the rise in rates meant
you need to take multiples down," said Rob Haworth, senior
investment strategist at U.S. Bank Wealth Management in Seattle.
"It's not the reopening trade at this point, it is higher
interest rates are here but not accelerating so the whole
economy is being lifted."
The Dow Jones Industrial Average .DJI rose 385.96 points,
or 1.16%, to 33,539.17, the S&P 500 .SPX gained 59.11 points,
or 1.47%, to 4,078.98 and the Nasdaq Composite .IXIC added
234.78 points, or 1.74%, to 13,714.89.
With speedy vaccinations and additional government stimulus
helping the S&P 500 and the Dow clinch all-time highs, focus now
turns to progress on a massive infrastructure plan and the
upcoming corporate earnings season. The tech-heavy Nasdaq is still about 4% below its February
high as the recent spike in bond yields spurred inflation
concerns and made growth stocks less attractive.
Energy shares were the worst performing sector, following a
sharp drop in oil prices. Reopening plays gained,
as the S&P 1500 airlines index .SPCOMAIR jumped 3.43% after
the U.S. Centers for Disease Control and Prevention said fully
vaccinated people can safely travel at "low risk." The agency
had held off for weeks on revising guidance that discouraged all
non-essential trips. U.S. Treasury Secretary Janet Yellen said she was working
with G20 countries to agree on a global corporate minimum tax
rate to end a "30-year race to the bottom on corporate tax
rates." Tesla Inc TSLA.O shares climbed 5.70% as one of the
biggest boosts to the S&P after the world's most valuable
automaker posted record deliveries.