Stocks on Friday rose on speculation that the Federal Reserve would hold off on rate hikes this month after slowing wage growth in May, with investors hoping the country would avoid a catastrophic debt default. I sent an email, and the stock price soared.
The Dow Jones Industrial Average rose 516 points, or 1.6%, to $33,578, while the Nasdaq rose 1% and the S&P 500 rose 1.3%.
The tech-heavy Nasdaq index reached its highest intraday level in 13 months, heading for a sixth straight week of gains and its highest since January 2020.
Employment data closely watched by the Labor Department showed the unemployment rate in May at 3.7%, compared to expectations of 3.5%, and average hourly earnings fell to 0.3% from 0.4% in April, underscoring slowing wage inflation. .
Non-farm payrolls increased by 339,000 compared to an expected increase of 190,000.
“This reflects a gradual, rather than abrupt, softening in the labor market, which is still strong, but which is exactly what the Fed wants,” said Art. Mr Hogan said.
“The Fed wants to keep inflation under control without crushing the job market, and this is another sign that they are actually on track to achieve that.”
The data provided relief to investors who had expected the Fed to forgo a rate hike this month for the first time since it began aggressive policy tightening more than a year ago.
Federal funds futures trading showed a more than 70% chance that the Fed will keep rates unchanged at its June 13-14 policy meeting.
Also uplifting was the fact that the Senate passed a bill late Thursday that would raise the government’s $31.4 trillion debt ceiling, averting the first-ever catastrophic default.
Amazon rose 1.6% after reports it was in talks with carriers to offer low-cost mobile services in the United States.
Carriers such as Verizon Communications Inc., T-Mobile US and AT&T fell 3.7% to 8.5%, while Dish Network rose 13.6%.