PARIS (Reuters) – The New York Stock Exchange rose on Friday after the release of the monthly jobs report suggested a slowdown in the U.S. labor market, slightly easing fears of a sharp hike in Reserve rates federal this month.
In early trading, the Dow Jones index gained 101.34 points, or 0.32%, to 31,757.76 points and the broader Standard & Poor’s 500 rose 0.40% to 3,982.57 points.
The Nasdaq Composite took 0.17%, or 19.554 points, to 11,804.68.
The pace of job creation slowed a little less than expected in August, to 315,000, but the jobless rate rose to 3.7% and wage increases eased, the Labor Department said.
This data slightly reduces the prospect of the Fed proceeding with another 75 basis point rate hike in September.
According to the CME’s FedWatch barometer, the markets now assess this probability at 64%, against 75% the day before.
“The labor market remains solid, without being too dynamic, and prices are softening, which corresponds to a scenario of a potential soft landing for the economy. We just need more data to see if this is really the case,” said Anthony Saglimbene, head of market strategy at Ameriprise Financial.
If the statistic favors the progress of the equity markets, American and European, it accentuates the decline of the dollar and bond yields, that of ten-year Treasury bonds losing 4.5 basis points to 3.2196%.
On the stock market, the semiconductor manufacturer Broadcom gained 3.08% after the publication of quarterly results and a sales forecast for the fourth quarter above expectations.
(Written by Laetitia Volga, edited by)