Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on November 10, 2022.
Brendan McDermidt | Reuters
A December jobs report rose on Friday, showing that employment was slightly stronger and wage gains were less than expected, signaling progress amid interest rate hikes by the Federal Reserve to control inflation.
The Dow Jones industrial average rose 322 points, or 0.98%, but was still the highest of the day. The S&P 500 rose 0.95% and the Nasdaq Composite rose 0.59%, but was underweight. Tesla Stocks, it fell more 4% after the company cuts prices. In some vehicles in China.
The December non-farm payrolls report showed The US economy added 223,000 jobs Last month, Dow Jones added 200,000 jobs, slightly more than economists had expected. In addition, wages grew more slowly than expected, rising 0.3% in the month when economists expected 0.4%.
Michael Aron, chief investment strategist at State Street Global Advisors, said: “All investors are worried about is that the data suggests that inflation is moving toward the Fed’s target. “That’s what investors are paying attention to and average hourly earnings indicate that inflation continues to decline. They’re excited about it.”
Stocks rebounded, but ISM’s non-manufacturing purchasing managers’ index showed it was at its highest for the day. The services sector contracted in December. A sign that the central bank’s rake hikes could work to slow the economy.
The Dow fell more than 300 points on Thursday after a stronger-than-expected ADP private payrolls report raised concerns that the Federal Reserve will continue to raise rates and keep them high, stoking fears of a US recession.
With Friday’s gains, stocks are likely to head into positive territory for the week. The Dow is currently up 0.48% for the first week of the year and the S&P 500 is up 0.30%. The Nasdaq is still lower for the week, falling 0.71%.