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By Uday Sampath Kumar
(Reuters) – US stocks edged up on Friday as China's stimulus plan helped dispel some global growth concerns as investors digested disappointing data on employment, which spanned a week of economic signals. mixed.
The Chinese central bank announced that it would reduce the amount of cash that banks must hold in reserves, freeing up a total of 900 billion yuan (126.35 billion US dollars) of cash to support the economy as a whole. difficulty.
Weaker-than-expected payroll growth in August signaled a slowdown in the US economy, helping to cement expectations of Fed interest rate cuts later this month.
Fed Chairman Jerome Powell told the University of Zurich that the labor market was solid and that the central bank would continue to "act appropriately" to support economic expansion. He also said that the United States and the global economy are not in danger of falling into recession.
Nonfarm payroll data from the Ministry of Labor showed that the economy had created 130,000 jobs in August, which is below expectations of a gain of 158,000 jobs, according to a study by Reuters from economists.
However, average hourly earnings rose 0.4% last month, the biggest increase since February, giving hope that healthy consumer spending could put inflation on the path to achieving the goal. goal of the Fed.
"If the Fed wants to become more accommodative, the data on jobs that do not meet expectations feed into this story and if they want to become more neutral, salary inflation that exceeds expectations reinforces this story," said Keith Buchanan, Manager portfolio at Globalt in Atlanta.
"There is something for everyone in this report, not only among the market participants, but also those of the Fed."
Even though the bad data from the August factories and the exorbitant August tariffs caused a hectic start, the major Wall Street indexes were on track for their second consecutive week of gains.
Mitigating political tensions in Hong Kong, hoping for a de-escalation of the US-China trade dispute, strong growth in the private sector wage bill in August and an acceleration in the services sector propelled stocks to levels record this month.
The benchmark S & P 500 () benchmark is more than just 1.66% of its record high in July and is on track to recover its losses from the past year. August.
The communications services sector () was the main drag on the 11 main sectors of the S & P, Facebook Inc (O 🙂 slipped 2.05% after US Attorneys General announced they would investigate whether the social media giant was choking competition and putting users at risk.
At 13:12, the Dow Jones Industrial Average () was up 94.30 points, or 0.35%, at 26,822.45, the S & P 500 () up 5.11 points, or 0 , 17%, at 2,981.11 and the Nasdaq Composite () up 1.36. points, or 0.02%, at 8,118,18.
Among other actions, Boeing Co (N 🙂 rose about 1.1% and was the biggest boost for the Dow Industrial.
Increasing issues outnumbered decliers with a ratio of 1.78 to 1 on the NYSE and 1.32 for one on the Nasdaq.
The S & P index posted 49 new highs over 52 weeks and no new lows, while the Nasdaq recorded 52 new highs and 35 new lows.
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