PARIS (Reuters) – The New York Stock Exchange opened sharply higher on Friday, optimistic about the Federal Reserve’s rate outlook while the latest employment figures were weaker than expected.
In early trading, the Dow Jones index gained 521.76 points, or 1.36% to 38,747.42 points and the broader Standard & Poor’s 500 rose 1.21% to 5,125.26 points. The Nasdaq Composite takes 1.94% or 306.52 points, to 16,147.482.
The monthly employment report published each month by the Labor Department showed Friday that job creation was weaker than expected in April, while unemployment rose and the pace of wage growth slowed.
Operators now estimate that the Fed will lower its rates twice this year, although the persistence of inflation and market tensions had ruled out this possibility.
“This report is probably the most favorable to the Fed in a long time, which should help investors regain confidence in the Fed’s ability to remain in control of inflation,” summarizes Florian Ielpo, head of macroeconomic research at Lombard Odier IM.
In terms of values, Apple increased by 7.9% after reporting on Thursday a less significant decline than expected in its turnover in the first quarter.
Paramount Global rose 4.4% after the Wall Street Journal reported that Apollo Global Management and Sony Pictures Entertainment made a $26 billion cash offer to buy the group.
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(Written by Corentin Chappron, edited by Kate Entringer)
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