Wall Street advanced after good work fact that left the expectations of a rate cut intact

In this context, the Dow Jones index of industrialists rose 0.77% to 45,621.29 points; The S&P500 won 0.82% to 6,501.44 points and the Nasdaq Composite showed 0.98% to 21,707.69 points.

Private payrolls in the sights

Private payrolls in the US increased less than expected in Augustwhile the weekly applications of unemployment subsidy exceeded expectations, according to the latest data that point to an improvement in labor market conditions.

Investors still estimate a 95% probability of a 25 basic points cut, according to analysts. This measure was widely expected after the discouraging payroll figures in Julythe moderate statements of the president of the FED, Jerome Powell and a weak vacancies report of the same month.

Attention now focuses on the highly agricultural payroll data on Friday. “I hope there is an ideal figure, where we are not creating jobs as before, but we are not collapsing either,” he said Ken Mahoneypresident of Mahoney Asset Management.

“The Fed realized that, if he had to correct something in his double mandate, the best thing for the economy in general was to ensure that companies did not fire more people”. On the other hand, the Institute for Supply Management index, the world’s largest and oldest supply management association, showed that the activity of the US services sector regained in August.

The Federal Reserve and the Future of Rates

The president of the Bank of the Federal Reserve of New York, John WilliamsHe said that the monetary policy meeting of the American Central Bank next month will be “live”, which insinuates the possibility of a movement in interest rates without specifying which course of action would support, according to Bloomberg.

“Definitely, I think each meeting is, from my perspective, live,” said Williams on Wednesday in an interview with CNBC. “We are achieving a greater balance of risks”he added, in reference to the two Fed mandates: maximum employment and price stability.

Investors bet on a rate cut at the September meeting, after Powell pointed out on Friday that “The downward risks for employment are increasing” and that “the change in the risk balance can justify an adjustment of our policy position.”

Williams said that the current level of rates is “moderately restrictive”which means that the Fed could “reduce interest rates and remain something restrictive, but again, we will have to determine exactly what is happening in the economy.”

The head of the Fed in New York indicated that unemployment remains low, and that some indicators, such as hiring, point to gradual cooling, although salary growth is maintained in line with “a solid labor market.” Inflation, on the other hand, is descending “quite slowly.”

The erratic behavior of actions

While companies linked to Ia They promoted US stock market rates to historical maximums this year, These slowed last month due to the concern for the valuations and results of the leading company Nvidia (+0.6%)which did not meet expectations.

In addition, technological companies faced growing pressure to show the return of billions of dollars in investments in artificial intelligence in recent years and some even took measures to expand their AI offer with agents, something that promotes automated services as a large growth engine.

Amazon.com won 4.3% while Platforms goal It rose 1.8%, and promoted the discretionary consumption sectors and communication services on the date.

For its part, Salesforce 8%fell, after Wednesday predicted income for the third quarter below Wall Street estimates, indicating a delay in monetization of its artificial intelligence agents platform.

American Eagle Outfitters 32% shot after the textile company forecast comparable sales for the third quarter over estimates.

Figma It sank 20% after the first quarterly results of the design software company, as a quoted company, did not impress investors.

The actions of Strategy Shares They grew 0.6% after The Information published that Nasdaq intensified their scrutiny about companies that try to boost the price of their actions by collection of funds to acquire cryptocurrencies.

The report indicated that Nasdaq now requires certain companies to obtain the approval of shareholders before issuing new actions for cryptocurrency purchaseswhich would potentially slow down the recent trend of companies that become cryptocurrency -centered actions. This greater supervision could delay agreements and introduce uncertainty in the rise of the crypto market.