US STOCKS-Strong economic data lifts Dow, S&P 500 to record closes

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* U.S. service sector activity at record high - ISM
* Tesla jumps after posting record deliveries

(Updates to market close)
By Chuck Mikolajczak
NEW YORK, April 5 (Reuters) - U.S. stocks rallied on Monday
with the Dow and S&P 500 closing at record levels, as a round of
strong economic data buoyed investor optimism for the economic
reopening and a muted climb in the 10-year U.S. Treasury yield
kept inflation worries in check.
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 cyclical sectors poised to lead an
economic reopening, with energy .SPNY , financials .SPSY and
materials .SPLRCM. among the best performing on the year. 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.

"Part of today is yields aren't moving and that is helping
tech, there is at least some rotation going back into tech by
somebody that is helping the sector," said Tim Ghriskey, Chief
Investment Strategist at Inverness Counsel in New York, New
York.
"At some point the cyclical move is discounted, these
stocks, a lot of them had big moves and are valued above where
they were in early February of 2020."
Unofficially, the Dow Jones Industrial Average .DJI rose
372.27 points, or 1.12%, to 33,525.48, the S&P 500 .SPX gained
57.91 points, or 1.44%, to 4,077.78 and the Nasdaq Composite
.IXIC added 225.49 points, or 1.67%, to 13,705.59.
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 3% below its February
high as the recent spike in bond yields spurred inflation
concerns and made growth stocks less attractive. But rising
COVID-19 cases and resumed lockdowns in countries such as France
recently have helped the appeal of tech names of late.
Energy shares closed lower, with a bigger decline than any
other sector, following a sharp drop in oil prices. plays gained, as the S&P 1500 airlines index
.SPCOMAIR jumped 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 as one of the biggest
boosts to the S&P after the world's most valuable automaker
posted record deliveries.