The three main indices of Wall Street extended their bullish rally this Friday after data that pointed to a slowdown in employment growth and a rebound in the unemployment rate reinforced investors’ expectations that The Federal Reserve has ended its monetary tightening campaign.
The S&P 500 index gained 1.1%, to 4,363 units, while the Nasdaq rose 1.4%, to 13,475 units. Meanwhile, the Dow Jones Industrial Average added 0.7%, to 34,087 units.
The Labor Department report showed that 150,000 jobs were added to nonfarm payrolls in October, compared to expectations for an increase of 180,000. due in part to strikes by Detroit’s big three automakers.
Last month’s data was revised down to show an increase of 297,000, instead of 336,000, and the unemployment rate rose to 3.9% versus expectations for it to remain at 3.8%.
The figures, which follow a series of mixed jobs data this week, reinforced the view that the Federal Reserve had reached the end of its rate hikes.
“It matches the market view that the labor market and the economy are slowing, which will keep the Federal Reserve on hold and cause central banks to cut rates next year,” said Jay Hatfield, CEO of Infrastructure Capital Management.
Traders’ bets that the Federal Reserve will keep interest rates steady in December rose to 90% from around 83%. earlier to the data, while assessing the possibility of a cut in May, compared to previous June expectations.
Falling Treasury yields boosted most mega-cap growth stocks, with Tesla, Nvidia and Alphabet rising between 1.1% and 2.9%.
Benchmark 10-year Treasury yield fell to five-week low after the payroll data and was placed for the last time in the 4.4921%.
Apple trimmed losses and was down 0.7% after its sales forecast for the current quarter fell short of Wall Street expectations, although the rebound in iPhone sales lifted fourth-quarter results above estimates.
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