U.S. stocks rise after jobs reports points to softening labor market
Investing.com — U.S. stocks were rising after labor market data that suggested the Federal Reserve could hold off on another interest rate increase when it meets on policy next month.
At 09:39 ET (13:39 GMT), the Dow Jones Industrial Average was up was up 156 points or 0.5%, while the S&P 500 rose 0.4% and the NASDAQ Composite was up 0.2%.
Wall Street’s main indices closed in a mixed fashion Thursday, but August was a difficult month for investors.
The blue-chip Dow Jones Industrial Average fell 2.4% last month, while the broad-based S&P 500 dropped 1.8% and tech-heavy Nasdaq Composite slumped 2.2%, both recording their first monthly decreases since February.
Friday's job report for August was expected to be a major factor in the Fed's decision making later this month.
After job openings came in lower than expected this week, today's jobs report showed nonfarm payrolls rose 187,000 but the unemployment rate also rose to 3.8%. Analysts expected the economy to add 170,000 jobs last month, down from 187,000 the prior month, and they expected an unemployment rate of 3.5%.
The Fed has been looking for signs that the tight labor market is starting to loosen, which should help tame inflationary pressure. The rise in the unemployment rate was interpreted by investors as a sign the Fed could decide to hold steady on interest rates next month.
According to Investing.com's Fed Rate Monitor Tool, there is now an 88% chance that the U.S. central bank will maintain the target range for the federal funds rate at 5.25% to 5.50%.
Helping the tone Friday was the news that Chinese factory activity unexpectedly grew in August, offering hope for the economic recovery in the world’s second largest economy.
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