(Reuters) – The New York Stock Exchange opened higher on Friday as investors eagerly awaited comments from U.S. Federal Reserve (Fed) officials on rates as the latest unemployment data boosted hopes of easing next monetary policy across the Atlantic.
In early trading, the Dow Jones index gained 89.39 points, or 0.23%, to 39,477.15 points and the broader Standard & Poor’s 500 rose 0.25% to 5,227.14 points.
The Nasdaq Composite takes 0.23%, or 38.09 points, to 16,384.35.
American markets came close to index records after a decline in stocks in April, driven by a series of data indicating a slowdown in the American labor market and reviving hopes of a reduction in key rates.
“This is a classic case of bad news being good news, as the jobs data over the past two weeks is what the Fed was finally expecting,” said Hugh Anderson, managing director at HighTower Advisors.
“Of course it’s not good for job seekers, but it creates an optimistic environment for the market because they are now looking to reduce their interest rates,” he added.
The release of better-than-expected financial results also supported the S&P 500 and Nasdaq, with the indexes heading for a third consecutive week of gains, while the Dow Jones is expected to post its fourth weekly gain.
In values, Moderna fell 1.9% after the American drug authority informed the group that due to administrative constraints, it will not complete the review of the vaccine against the respiratory syncytial virus (RSV) before the end of May.
The cybersecurity group Gen Digital soars 13% and the artificial intelligence technology company Soundhound 21.75% after the publication of their quarterly results.
Stocks of gold mining companies are rising as the price of gold rises. Newmont and Barrick Gold shares gained 1.31% and 0.94% respectively.
Warner Bros Discovery gains 3% after an increase in recommendation from KeyBanc.
(Writing by Augustin Turpin, edited by Kate Entringer)
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