In New York, the perception that a dismal US private employment report reduced pressure on the Federal Reserve to raise interest rates further led to an early rise in Wall Street stocks on Wednesday.
US stocks rise: The 10-year US Treasury note fell after reaching a 16-year high on Tuesday when payroll company ADP revealed that the US private sector added only 89,000 jobs in March, far less than forecast.
According to Adam Sarhan of 50 Park Investments, “we’re entering a situation where any negative economic data or soft economic data will likely be viewed as bullish for stocks.”
He continued, “Because that lessens pressure on the Fed to keep aggressively raising rates.”
The Dow Jones Industrial Average was up 0.2 percent at 33,060.23 about ten minutes into trading.
The tech-heavy Nasdaq Composite Index rose 0.7 percent to 13,156.57 and the broad-based S&P 500 increased by 0.4 percent to 4,246.43.
Markets also took in Washington’s most recent political surprise, which saw Kevin McCarthy’s speakership of the House overthrown by ardent Republicans.
“A faction of the Republican party defeated McCarthy last weekend due to his cooperation with Democrats in passing a temporary budget extension to avoid a government shutdown,” said Briefing.com analyst Patrick O’Hare.
“When the current continuing resolution expires on November 17, there is an added level of uncertainty about the market’s ability to broker a deal to avoid a shutdown,” O’Hare said.
He continued by saying that the problem might worsen “down the road.”
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