by Noel Randewich and Amruta Khandekar

(Reuters) – The New York Stock Exchange ended higher on Friday, as investors expressed optimism about a soft landing for the U.S. economy following the release of the Labor Department’s monthly report.

The Dow Jones index gained 0.36%, or 130.49 points, to 36,247.87 points.

The broader S&P-500 gained 18.78 points, or 0.41%, to 4,604.37 points.

The Nasdaq Composite advanced 63.98 points (0.45%) to 14,403.97 points.

The Labor Department’s monthly report released Friday showed the U.S. economy created more jobs than expected in November.

This report lists 199,000 non-agricultural jobs created last month in the United States while economists polled by Reuters forecast an average of 180,000.

The unemployment rate fell to 3.7% after 3.9% in October, while the increase in average hourly wages slowed to 4.0% year-on-year after 4.1% the previous month.

Traders now anticipate that the US Federal Reserve (Fed) will begin lowering rates in May, according to CME’s Fedwatch barometer.

“The falling unemployment rate in particular will ease fears of a recession, and with wages and outcomes rising, the soft landing thesis remains relevant,” said Stuart Cole, chief macroeconomist at Equiti Capital.

“The report should cause some of those who anticipate an anticipated Fed cut next year to reevaluate their positions,” he added.

In values, Nvidia and Meta Platforms, the parent company of Facebook, carried the Nasdaq.

Honeywell fell after news that the group will buy Carrier’s security business for five billion dollars.

Paramount Global jumped after reports that the media conglomerate has received expressions of interest in its takeover.

(Reporting Amruta Khandekar, Shristi Achar A and Noel Randewich; Camille Raynaud)

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