Wall Street advances; optimism regarding Fed rates remains steady.

he three main indices of Wall Street are trading with gains on Monday morning. Stock averages are rising, extending Friday's optimism.

Ignacio Teson•Monday, May 6, 2024•1 min read

The stock indices rise, extending Friday’s optimism following weaker-than-expected nonfarm payroll data.

The three main indices of Wall Street are trading with gains on Monday morning. Stock averages are rising, extending Friday’s optimism following weaker-than-expected nonfarm payroll data.

The leading Dow Jones index, composed of the stocks of 30 giants, is up 0.16% to 38,737.02 points, while the S&P 500, consisting of 500 stocks, is up 0.55% to 5,155.99 units. The tech-heavy Nasdaq Composite was gaining 0.75% at 16,276.93.

The latest report on the U.S. labor market revealed weak data, which served as a catalyst for stock buying by supporting bets that the Federal Reserve (Fed) will cut its rate twice this year.

With no relevant economic data today, investors await speeches from Richmond Federal Reserve Bank President Thomas Barkin and New York Federal Reserve Bank President John Williams later.

By sectors, the only one in the red was non-essential goods, following a strong rise. Among the 30 Dow Jones stocks, declines were notable in Amgen (-3.06%), after having risen more than 13%, and Apple (-0.63%), which advanced 6% in the previous session.

SPX

Meanwhile, among the most relevant news of the day, the inflation rate of the Organization for Economic Cooperation and Development (OECD) recorded a year-on-year advance of 5.8% last March, one-tenth higher than in February and January, moving away from the lowest price increase since October 2021, as reported by the think tank of advanced economies.

In the third month of 2024, food prices rose by 4.9%, below the 5.3% increase in February, while energy prices entered positive territory for the first time since April 2023 with a reading of +0.6 percent.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.