stock indices in Wall Street They rose this Friday, June 2, after the data on the moderation of wage growth in May in the United States, which was known a few hours ago and responds to the fact that this novelty prompted bets that the Federal Reserve will not raise interest rates this month . In addition, investors welcomed the country’s avoidance of a catastrophic default on debt payments with the final approval of the project to suspend the debt ceiling.
The index technology nasdaq it scored its sixth consecutive weekly rise, the best streak since the pre-pandemic.
The index S&P 500 gained 60.78 points (+1.4%) to 4,281.80 unitsMeanwhile he Nasdaq rose 140.05 points (+1.1%), to 13,241.03 units. Meanwhile, the Dow Jones Industrial Average adds 706.13 points (+2.1%), to 33,767.70 units.
What the Employment report said
It is worth mentioning that the employment report from the Department of Labor showed an unemployment rate of 3.7% in May, which compares with a forecast of 3.5%, while average hourly earnings came in at 0.3%, down from 0.4% in April, highlighting a cooling of wage inflation . 339,000 jobs were added to non-farm payrolls, compared to expectations of 190,000 new positions.
“This reflects a labor market that, although is still robust it is softening gently, not quickly. That’s exactly what the Federal Reserve would like to see,” said Art Hogan, chief market strategist at B Riley Wealth in New York.
And he assured that the Fed wants to tame inflation without crushing the labor market, and that this last data is another proof that they are actually on the right track to achieve it.
So this information comes as a relief to investors, who now hope the Federal Reserve will not raise interest rates this month for the first time since it began its aggressive tightening policy more than a year ago.
The Federal Reserve Funds Futures show a probability greater than 70% that it will maintain interest rates at its meeting on June 13 and 14.
Separately, the Senate approved late on Thursday a bill to raise the public debt ceiling to $31.4 trillion, thus avoiding a catastrophic first default by the world’s largest economy.