Global market update: Wall Street inches higher on US Fed rate pause buzz
Global market update: On account of rate pause buzz in upcoming US Fed meeting in September 2023, Wall Street ended higher on Friday. Two out of three major indices ended higher while tech heavy Nasdaq finished marginally lower on Friday session. Dow Jones index ended 0.33 per cent higher, S&P 500 gained 0.18 per cent while Nasdaq closed 0.02 per cent lower on last day of the week gone by.
However, these indices had opened with handsome gains but three major indexes gave up earlier advances, losing momentum as the session progressed and investors digested the data ahead of the long US holiday weekend. In braod market, Small Cap 2000 index skyrocketed 1.11 per cent during Friday deals. On why Wall Street indices pared early morning deals on Friday, Ryan Detrick, chief market strategist at Carson Group in Omaha said, "Today, people are coasting into the holiday weekend with relief that the job numbers were solid." "There are signs of the economy slowing, which is what the Fed wants to see," Detrick said adding, "It likely opens the door for no rate hike at the next Fed meeting in three weeks." The Labor Department's payrolls report showed the U.S.
economy added more jobs than expected last month, but the rising unemployment and participation rates, along with a welcome cool-down in average hourly wage growth, solidified expectations that the Fed will let key interest rates stand this month. European stocks steadied, ending the session flat as a decline in luxury and auto shares was offset by gains in mining and healthcare. The STOXX 600 posted its biggest weekly gain since mid-July.
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