by Stephen Culp
(Reuters) – The New York Stock Exchange ended higher on Friday, optimistic about the Federal Reserve’s rate outlook while the latest employment figures were weaker than expected.
The Dow Jones index gained 1.18%, or 450.02 points, to 38,675.68 points. The broader Standard & Poor’s 500 gained 63.59 points, or 1.26% to 5,127.79 points. The Nasdaq Composite advanced 315.37 points (1.99%) to 16,156.328.
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 neither too positive nor too negative, which is exactly what the Fed wants to see,” explains Peter Cardillo, economist at Spartan Capital Securities in New York. “We have more evidence, but if we continue on this path, it could change the timing of a rate cut, and instead of one cut, we could see two rate cuts this year.”
In terms of values, Apple climbed 6% after reporting on Thursday a less significant decline than expected in its turnover in the first quarter.
Expedia fell 15.3% after lowering its growth forecast for the year.
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