(Reuters) – The New York Stock Exchange ended higher on Wednesday, rebounding from sharp losses the day before, while a report published during the day showed that the American private sector created fewer jobs than expected in September , in a context of fears about the rate policy of the Federal Reserve (Fed).
The Dow Jones index gained 0.39%, or 127.17 points, to 33,129.55 points.
The broader S&P-500 gained 34.30 points, or 0.81%, to 4,263.75 points.
The Nasdaq Composite advanced 176.54 points (1.35%) to 13,236.01 points.
Rising to 16-year highs since the Fed’s last meeting, which hinted on September 20 that it might raise interest rates again, bond yields fell slightly after the ADP report on employment.
The expectation that the US central bank will raise rates again in November, and the prospect of it keeping rates high for longer, continues to worry investors.
They are notably awaiting, on Friday, the monthly report on employment in the United States, while the resilience of the labor market is one of the factors weighing on the cycle of monetary tightening initiated last year by the Fed to curb inflation.
“We saw a shift in September in both strategists’ and investors’ views,” said Oliver Pursche, vice president at Wealthspire Advisors in Westport, Connecticut.
“It seems that it has finally sunk in that interest rates are going to stay high for a long time, and that the idea that the Fed is going to cut rates in the near future is fiction,” he added.
Among the major sectors of the S&P-500, technology and communications services posted some of the biggest gains of the day, alongside the decline in U.S. Treasuries.
On the value side, several technology giants including Amazon ended higher.
Ford Motor remained stable despite a nearly 8% jump in its U.S. vehicle sales in the third quarter.
( Jean Terzian)
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