Wall Street gains on strong services sector data; Dow, S&P rise over 1%

A sharp jump in Covid-19 cases recently in the United States has cast a shadow over the strong rally in stocks as many states have curtailed their reopening plans

US stocks rose sharply on Monday as a rebound in US services industry activity in June and expectations of a revival in China's economy boosted optimism, helping investors look past a surge in new coronavirus cases in the United States.

A non-manufacturing activity index jumped to a reading of 57.1 last month, the highest since February, from 45.4 in May, according to a report from the Institute for Supply Management (ISM).

"These numbers are important, and it helps to explain the increase in consumer confidence," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.