by Herbert Lash and Shreyashi Sanyal
(Reuters) – The New York Stock Exchange ended higher on Thursday, buoyed by hopes of a pause in the Federal Reserve’s rate hike and positive progress on the US debt ceiling file.
The Dow Jones Industrial Average gained 0.47%, or 153.3 points, to 33,061.57 points.
The broader S&P-500 gained 41.19 points, or 0.99%, to 4,221.02 points.
The Nasdaq Composite advanced its side 165.7 points (1.28%) to 13,100.98 points.
U.S. jobless claims last week were virtually flat as the private sector added more jobs than expected in May, data that indicates the labor market is still showing signs of strength , which could encourage the Fed to keep rates high.
Investors are now awaiting Friday’s release of the Labor Department’s monthly report.
“The first quarter unit labor cost data doesn’t normally elicit a reaction, but it signaled a significant improvement,” said Edward Moya, senior market analyst at OANDA.
The market estimates the likelihood of the Fed’s pause in raising rates at around 70% at its next meeting.
The positive progress on the debt dossier also benefited the markets.
The House of Representatives on Wednesday approved a bipartisan bill providing for the temporary suspension of the debt ceiling of the United States and the text is now considered in the Senate.
In values, the good performance of Nvidia carried the S&P 500.
C3.ai fell after announcing full-year revenue outlook below analysts’ expectations.
Salesforce weighed on the Dow after reporting its slowest quarterly revenue growth in 13 years.
Goldman Sachs ended lower after announcing it planned further job cuts due to the economic climate.
(Report Herbert Lash, with the contribution of Shreyashi Sanyal and Shristi Achar A; French version Camille Raynaud)
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