Traders increased bets that the Fed will make its first rate cut this year in September and the CBOE volatility index, known as Wall Street’s “fear gauge,” hit its lowest level in a month.
The main Wall Street indices rise this Friday, May 3, after a employment report weaker than expected revived hopes that the Federal Reserve cut interest rates this year. Additionally, they pushed up optimistic corporate updates from Apple profits and Amgen.
In that context, the Dow Jones Industrial Average climbs 428.94 points, or 1.1%, to 38,654.60 units; he S&P 500 gains 56.74 points, or 1.1%, to 5,120.94 units; and the Nasdaq Composite adds 304.85 points, or 1.9%, to 16,145.81 units.
Wall Street: Weak employment data improves rate cut bets for this year
He US job growth slowed more than expected in April and the annual salary increase fell to less than 4% for the first time in almost three years, while the unemployment rate stood at 3.9%compared to expectations that it would remain stable at 3.8%.
“The data is weak overall from the Fed’s perspective, which is what really matters, and a 3.9% unemployment rate is not disastrous,” he said. Jason Pridehead of investment strategy and research at Glenmede. “This indicates an economy that is not declining drastically, but it definitely indicates a weaker labor market”.
In that line, the Traders increased bets that the Fed will make its first rate cut this year in September and the CBOE volatility index, known as Wall Street’s “fear gauge,” hit its lowest level in a month.
On Friday it was also known that the US services sector contracted in Marchwhile a measure of The prices paid by companies for inputs increaseda worrying sign for the inflation outlook.
Wall Street: Apple and Amgen soar after upbeat corporate updates
Manzana climbs 6.7%, outperforming other mega-cap stocks, after the maker of the iPhone unveiled a record program of share buyback worth $110 billion and will exceed modest expectations for quarterly results and forecasts.
Amgenmeanwhile, soared 12.8% as the biotech company said it was very encouraged after completing an interim analysis of its mid-phase study of the experimental weight loss drug MariTide and after reporting first quarter profits.
Nine of the 11 major S&P 500 sectors rosewith information technology and real estate among the most bullish.
Source: Ambito
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