According to a Reuters report, Wall Street stocks rose on Friday after a labor market report that showed a slowdown in wage growth in May. This increased the likelihood that the Federal Reserve (Fed) will suspend interest rate hikes this month. Investors were also worried about the prevention of a possible default in the US.
The US Department of Labor report showed that the unemployment rate in May was 3.7%, higher than the expected level of 3.5%. The average hourly wage in May increased by 0.3%, while in April this figure was 0.4%.
The number of non-agricultural jobs increased by 339 thousand in May, which exceeded forecasts of 190 thousand. These data indicate the Fed's success in fighting inflation and maintaining stability in the labor market. They also confirm the Fed's progress towards its goals.
The report brought relief to investors who now expect the Fed to not raise interest rates this month, the first in more than a year.
Additionally, investors received positive sentiment from the Senate's passage of a bill to raise the national debt ceiling by $31.4 trillion.
The Dow Jones Industrial Average rose 353.96 points, or 1.07%, to 33,415.53. The S&P 500 rose 28.65 points, or 0.68%, to 4,249.67. And the Nasdaq Composite rose 47.77 points, or 0.36%, to 13,148.75.
Amazon.com Inc (NASDAQ:AMZN) shares rose 1.6% after reports that the company is in talks with carriers to provide low-cost mobile services in the US.
Telecom carriers including Verizon (NYSE:VZ) Communications, T-Mobile US (NASDAQ:TMUS) Inc and AT&T (NYSE:T) fell 8.5%, while Dish Network (NASDAQ:DISH) Corp gained 8.5%. 13.6%.