NEW YORK, Jan 4 — Wall Street stocks bounced higher early today following strong US jobs data, recovering some after the rout in the prior session.
About 15 minutes into trading, the Dow Jones Industrial Average had added to its rebound and was up 1.8 per cent at 23,084.51. The blue-chip index fell 2.8 per cent yesterday amid fears of slowing growth.
After its worst showing for any December since 1931, the broad-based S&P 500 also climbed 1.8 per cent to 2,492.09, while the tech-rich Nasdaq Composite Index advanced 2.0 per cent to 6,593.55.
US employers added a net 312,000 new positions in December, smashing economists’ expectations.
The unemployment rate ticked up by two tenths of a point to 3.9 per cent, but that was due mostly to more workers joining the job hunt, according to the closely-watched report.
The data come amid debate on whether the US Federal Reserve has been too aggressive in hiking interest rates and should back off in 2019. Fed chief Jerome Powell is scheduled to speak later this morning.
“Investors and Fed officials will certainly take some comfort from today’s stellar jobs report,” Oxford Economics said in a research note.
“Barring further tightening in financial conditions that would negatively impact economic activity, the very strong labor market picture support our expectations that the Fed will keep a tightening bias in 2019 and hike rates twice next year. However, we look for the Fed to wait until May 1 to hike rates again.”
US stocks were pummeled yesterday after Apple slashed its revenue forecast due to weak demand in China and a report showed US manufacturing activity slumping to a two-year low, reviving fears about a global economic slowdown in the wake of the US-China trade war. — AFP
Source: The Malay Mail Online