Stocks rise on dovish Fed chair comments, big job report beat
Stocks increased more than 600 points Friday after the Federal Reserve Chair Jerome Powell said the central bank is prepared to adjust the policy quickly and flexibly.
Investors commented on Powell, who also said the Fed would be patient in raising rates among conflicting economic signals, suggesting the Fed might be willing to slow down interest rates.
The central bank has expected to increase prices twice this year.
Shares were also concerned with a report by the Ministry of Labor that US employers created much more jobs last month than expected analysts.
US employers added 31[ads1]2,000 jobs in December. The gains – which come in the heels of last season's 660's losses – largely exceeded Wall Street expectations for an increase of 177,000 jobs, even in the heels of a tumultuous month for the markets that saw Dow and S & P 500 at their worst performance since the Great Depression.
Shares were also pledged by China, whose prizes said Friday that the country would reduce taxes, fees and bank reserve requirements to increase the nation's economy of weakness. That weakness has hit the demand for American products.
In addition, the markets availed themselves of an announcement from China's Trade Department, which said that a US trade delegation led by trade representative Jeffrey Gerrish visits China Monday and Tuesday.
The two sides are working to resolve disputes about trade and other financial problems.
| Ticker | Security | Last | Change | % Chg | ||
|---|---|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGES | 23366.67 | +680.45 | + 3.00% | +680.45 | + 3.00% |
| ] + 3.00% | ||||||
| SP500 | S & P 500 | 2509.71 | +1.61 | + 2.53% | ||
| I: COMP | NASDAQ COMPOSITE INDEX | ] 6669.6748 [19659017] +206.17 | + 3.19% | Apple shares climbed more than 3 percent, recovered from Thursday's 10 percent loss.
In Asian trading on Friday, the optimism of trade negotiations with the US contributed investor nerves. China's Shanghai Composite Index stopped 2.0 percent and high by 0.8 percent for the week. Hong Kong's Hang Seng Index ended 2.2 percent and was up 0.5 percent for the week. Japan's Nikkei had its first trading session in the new year and ended the day by 2.3 percent More from FOX Business …In European markets, London's FTSE increased 1.24 percent, Germany's DAX rose 1, 7 percent and France's DAC gained 1.2 percent. The US stocks fell in Thursday despite a strong ADP private employment report, showing that the US economy last month dropped to 271,000 jobs, well before the 178,000 analysts had expected. Ken Martin contributed to this story. 19659038]
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