PARIS (Reuters) – The New York Stock Exchange opened higher on Wednesday, supported by the ADP firm’s survey on private employment in the United States which shows a slowdown in the labor market.
In early trading, the Dow Jones index gained 41.23 points, or 0.12% to 33,043.61 points and the broader Standard & Poor’s 500 rose 0.16% to 4,236.15 points. The Nasdaq Composite takes 0.26% or 34.00 points, to 13,093.461 points.
The ADP gauge of U.S. private employment, released Wednesday, showed that the number of job openings in August was significantly below consensus, an indication that labor markets may begin to ease under pressure from rate hikes of the Federal Reserve.
The indicator was all the more welcome as JOLT new job postings data released Tuesday showed a larger-than-expected rise in new job postings in August, raising fears that tensions in US labor markets does not persist.
As such, the respite provided by the ADP indicator is likely to be short-lived, as new unemployment claims are expected on Thursday and the employment report on Friday.
Tensions in labor markets have become one of the main factors of inflation in the United States, and a persistence of these tensions could convince the Federal Reserve to keep its rates in restrictive territory for longer than anticipated by the markets.
In terms of values, Intel is up 1.82%, with the company planning to make its programmable chip unit a standalone business starting in January, and take it public over the next two or three years.
(Written by Corentin Chappron, edited by Kate Entringer)
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