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NEW YORK, Dec. 29 (AP) — Stocks rose in early trading on Wall Street as investors reviewed the latest government update showing the labor market remains strong.
As of 11:31 a.m. ET, the S&P 500 was up 1.7%.
Roughly 95% of stocks in the benchmark index rose. It was the latest wobble for stocks in a volatile holiday-shortened week.
The Dow Jones Industrial Average rose 341 points, or 1%, to 33,218, while the Nasdaq added 2.5%.
Shares rose 7.5% on Tuesday as Tesla continued to recover from sharp losses following reports that production at one of its Shanghai factories was temporarily suspended. The stock is still down 65% for the year.
Investors have been hoping for a “Santa Claus” rally.
That’s Wall Street’s term for gains in stocks over the last five sessions of December and the first two sessions of January. Even a late-day rally likely won’t change the broader market’s direction for the month.
Every major index is set to drop in December, capping a dismal year. Despite record profits for S&P 500 companies this year, investors in the benchmark index will lose about 20% in 2022, the worst year since 2008.
U.S. Treasury yields were mixed. The yield on the 10-year U.S. Treasury note fell to 3.85% from 3.89% late Wednesday.
European markets were higher, while Asian markets were lower.
Investors have been focusing on the Fed’s ongoing battle with stubborn inflation.
Central banks have been raising interest rates to curb borrowing and spending and lower inflation, but the strategy risks going too far and tipping the economy into recession.
That has Wall Street paying more attention to the broader data as it tries to determine whether inflation is cooling and how various parts of the economy are performing.
The latest news from the US showed that the number of people filing for unemployment benefits rose only slightly last week.
The labor market has been one of the stronger areas of the economy.
That’s usually good news, and it helps build a bulwark against a recession at a time when other parts of the economy are slowing.
It also makes the Fed’s fight against inflation more difficult, meaning the central bank may have to remain aggressive, raising the risk that its policies could lead to a recession.
The Fed has raised interest rates seven times this year and is expected to do so in 2023.
The key lending rate, known as the federal funds rate, is in a range of 4.25% to 4.5%, and Fed policymakers forecast it will reach a range of 5% to 5.25% by the end of 2023.
Their forecast does not call for a rate cut before 2024. (Associated Press)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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