You are here: Home » Reuters » News
Business Standard

Corrected: Wall Street higher as wage data eases inflation fears


(Corrects paragraph 4 to say is from B. Riley FBR, not is a unit of B. Riley Financial Inc)

By and Parikshit Mishra

(Reuters) - U.S. stocks gained on Friday after payrolls data showed strong job additions in February, but muted wage growth indicated a gradual rise in that tempered expectations of faster interest rate increases.

jumped by 313,000 jobs last month, the Labor Department said, its biggest increase in more than 1-1/2 years.

Average hourly earnings edged up four cents, or 0.1 percent, to $26.75 in February, a slowdown from the 0.3 percent rise in January. That lowered the year-on-year increase in average hourly earnings to 2.6 percent from 2.8 percent in January.

"The great is the labour participation rate went up, the headline numbers are great, and the average hourly earnings has settled back down into consensus," said Art Hogan, at in

"It's a great report across the board and I think that moves markets higher."

Strong jobs data last month fuelled speculation that higher wages could lead to faster interest rate increases by the Federal Reserve and make borrowing expensive, rattling global equities market.

However, the slow wage growth in February could temper expectations that the Fed will change its rate forecast to four hikes this year from three.

The bull market for stocks turned nine years old on Friday and, despite being long in the tooth, appears poised to set the record as the longest in history, buoyed by global economic growth and stronger company earnings.

At 9:46 a.m. ET, the Dow Jones industrial average was up 130.37 points, or 0.52 percent, the was up 14.29 points, or 0.521729 percent.

The was up 41.94 points, or 0.56 percent, at 7,469.89.

yields hit session peaks after the data, although the rise could be limited by slowing wage

Signs of a potential breakthrough in nuclear tensions in the also lifted sentiment, with world markets hitting one-week highs on Friday.

U.S. markets closed higher on Thursday after appeared to soften his stance on heavy import tariffs on and aluminium.

Worries that the tariffs on and aluminium could ignite a global trade war had roiled markets since last Thursday, with the exit of intensifying the concerns.

Among bigger movers, slid 9 percent after posting a surprise drop in same-store sales and forecasting a weak profit for the current quarter and the full year.

Shares of toymakers and were lower after sources told that retailer is preparing for a potential liquidation.

fell 1.2 percent, following the exit of and a note on rising competition.

(Reporting by and in Bengaluru; Editing by Sriraj Kalluvila)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 21:31 IST