(News Bulletin 247) – The New York Stock Exchange should open higher on Friday morning after the publication of a lackluster employment report, which reinforces expectations of an imminent end to the cycle of rate hikes.
Half an hour before the opening, the futures contracts on the main New York indices advance from 0.5% to 0.7%, announcing a start to the session in the green.
The US economy added 187,000 nonfarm payrolls in August, according to the Labor Department, a number slightly above market expectations of 165,000.
But that much-anticipated monthly Labor Department jobs report also pointed to slowing wage growth, which is causing inflation to persist.
The unemployment rate also rose by 0.3 points to 3.8% and job creations for the two previous months were revised down sharply.
All of this relatively lackluster data provides grist for those who predict that the Federal Reserve will soon end its rate hikes.
Traders’ estimated likelihood of a further tightening at the end of the month fell back to 7% from 11% yesterday, according to the CME Group’s FedWatch Barometer.
On the bond market, the yield on the 10-year American bond reacted downward to the rise in the unemployment rate and the deceleration in the average hourly wage, falling back below 4.08%.
Over the week as a whole, marked by a decline in bond yields amid hopes of a break in restrictive monetary policy, the Dow has so far gained just over 1% and the Nasdaq nearly 3.2%. .
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