(Reuters) – The New York Stock Exchange opened higher on Friday on news of an unexpected rise in the jobless rate, bolstering expectations that the Federal Reserve will keep rates unchanged this month.

In early trading, the Dow Jones index gained 211.07 points, or 0.61%, to 34,932.98 points and the broader Standard & Poor’s 500 rose 0.61% to 4,535.14 points.

The Nasdaq Composite took 0.69%, or 96.80 points, to 14,131.76.

The Labor Department’s August report, released shortly before the opening of trading, shows the jobless rate rose to 3.8%, as economists polled by Reuters expected ‘it remains unchanged at 3.5%.

Wages rose 0.2% month on month, a slowdown from the 0.4% rise recorded in July.

This report was eagerly awaited to inform the Federal Reserve’s next rate decision, the day after the release of the US PCE indicator, one of the central bank’s favorite inflation measures, which showed that prices were continuing their decline across the Atlantic.

“The likelihood of the US monetary institution taking a break at its next meeting has never been higher,” said John Plassard, analyst at Mirabaud.

For Michael Arone, chief investment strategist of State Street Global Advisors, the report “offers investors the best of both worlds”. “The jobs market is easing just enough to keep the Fed at bay while still being strong enough to stave off an economic recession,” he said.

The ISM manufacturing index for August is also expected at 14:00 GMT.

In values, computer manufacturer Dell Technologies gained 20% after revising its annual forecast upwards.

Broadcom lost 4.22% as the group forecast lower-than-expected revenue for the current quarter due to lower business demand.

Tesla, which has reduced the price of some of its models, opened 2.4% lower.

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(Written by Diana Mandiá, Editing by Kate Entringer)

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