S&P 500 traders await the key NFP data
- The Dow Jones Industrial Average rose 154.09 points, or 0.47%, to 33,062.36.
- The S&P 500 gained 41.26 points, or 0.99%, to 4,221.09.
- The Nasdaq Composite added 165.70 points, or 1.28%, to 13,100.98.
The S&P 500 rallied to a nine-month closing high on Thursday. the sentiment was boosted on Wall Street as the slowing wage pressure raised hopes the Federal Reserve will pause hiking interest rates. Additionally, investors cheered a vote in Congress to suspend the US debt ceiling.
A slump in productivity was revised lower, while the ISM PMI showed the manufacturing sector contracted for a 7th month. Initial jobless claims and the ADP report beat forecasts but the data indicates a less tight labour market. Meanwhile, Fed´s Governor Philip Jefferson and Philadelphia Fed President Patrick Harker suggested the central bank would skip a rate hike in the next meeting. Stocks were supported by the expectations that the Federal Reserve might not hike interest rates when its policy committee meets later this month. The CME Fedwatch Tool shows a 75% probability the central bank will keep rates unchanged.
Focus now shifts to the Labor Department's closely watched Nonfarm Payrolls report. ´´US payrolls likely slowed modestly in May, advancing at a still strong 200k+ pace for a second consecutive month. We also look for the Unemployment Rate to stay unchanged at a historical low of 3.4%, and for wage growth to print 0.3% MoM (4.4% YoY),´´ analysts at TD Securities said.
S&P 500 technical analysis
Following the breakout, there could be a move back into longs but alñl will depend on NFP.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
