Wall Street: Wall Street up after jobs and debt deal

NEW YORK (Reuters) – The New York Stock Exchange on Friday welcomed the vote by the United States Congress on a bipartisan agreement on the United States’ federal debt and the employment report showing a buoyant labor market but of a smaller wage increase last month.

The Dow Jones index gained 2.12% to 33,762.76 points, the S&P 500 gained 1.45% to 4,282.37 points and the Nasdaq Composite rose 1.07% to 13,240.77.

Over the past week, the Dow gained 2.02%, the S&P 1.82% and the Nasdaq 2.04%.

The Nasdaq posted a 13-month high in session and recorded its sixth consecutive week of gains, which had not happened to it since January 2020.

The eleven sector indices of the S&P 500 finished in the green.

According to the Labor Department’s monthly report, the US economy added 339,000 non-farm payrolls last month, more than expected, but wage growth has slowed, which would argue in favor of a pause in the policy of monetary tightening by the Federal Reserve.

Some analysts temper this optimism, however, pointing out that the number of job creations well above market expectations indicates that the Fed has not yet brought inflation under control.

“From our perspective, the market is dead wrong on its assessment. The market perception is that this economy was going to slow down, inflation was going to crash, and the Fed was going to reverse policy and start cutting interest rates. interest. It’s not,” says Phil Orlando, equity strategist at Federated Hermes in New York.

Operators also welcomed the adoption Thursday evening by the US Senate of the bill providing for the suspension of the ceiling on federal debt until the end of 2024, which spares the United States a potentially catastrophic default.

On the value side, Amazon gained 1.2% after information that the e-commerce giant is talking with telecom operators to offer low-cost mobile services in the United States.

Verizon Communications, T-Mobile US and AT&T fell between 3.2% and 5.6%.

Dell (+3.98%) and Broadcom (+2.79%) also rose after their quarterly results.

(Herbert Lash, with Shreyashi Sanyal, Shristi Achar A and Shashwat Chauhan, French version Jean-Stéphane Brosse)

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