NEW YORK, Sept 2 — The S&P 500 ended higher yesterday after a jump in unemployment cemented expectations of a pause in interest rate hikes this month, while shares of streaming firms tumbled due to a rate dispute between Disney and Charter Communications.

The Labour Department’s report showed the August unemployment rate rose to 3.8 per cent while wage growth slowed. Nonfarm payrolls rose more than expected, though data for July was revised lower to 157,000 job additions.

The data added to recent macroeconomic evidence that the Federal Reserve is winning its battle against inflation, and it cemented expectations the central bank is near the end of its interest rate hiking cycle.

"The data makes the case for the Fed becoming more dovish as we head into the fall. If the end of tightening comes sooner than later, that could lead to a substantial rally in stocks,” said Keith Buchanan, a portfolio manager at GLOBALT Investments in Atlanta.

Interest rate futures suggest traders see a 93 per cent chance the Fed will keep interest rates unchanged at its meeting later this month, according to CME’s FedWatch tool.

Walt Disney dropped 2.4 per cent and Charter Communications fell 3.6 per cent after the companies traded salvos over an unresolved distribution agreement after several channels, including ESPN, went dark on Thursday for customers of Charter’s Spectrum cable service.

Other streaming companies also fell, with Warner Bros Discovery slumping 12 per cent, Paramount Global losing 9.5 per cent and Fox Corp down nearly 6 per cent.

The most traded stock in the S&P 500 was Tesla Inc, with US$32.6 billion (RM151.5 billion) worth of shares exchanged during the session. The shares declined 5 per cent after the EV maker cut prices for its Model S and Model X vehicles in the US

Unofficially, the S&P 500 climbed 0.18 per cent to end at 4,515.77 points.

The Nasdaq declined 0.02 per cent to 14,031.82 points, while Dow Jones Industrial Average rose 0.33 per cent to 34,837.71 points.

Of the 11 S&P 500 sector indexes, six rose, led by energy, up 2.05 per cent, followed by a 1.01 per cent gain in materials.

Volume on US exchanges was relatively light, with 8.9 billion shares traded, compared to an average of 10.4 billion shares over the previous 20 sessions.

For the week, the S&P 500 rose 2.50 per cent, the Dow added 1.43 per cent and the Nasdaq climbed 3.25 per cent.

The US stock market will remain closed on Monday for the Labour Day holiday.

Broadcom fell 5.5 per cent after the chipmaker projected current-quarter revenue below expectations, while Dell Technologies surged 21 per cent after the personal computer maker raised its annual forecasts for revenue and profit.

Lululemon Athletica gained 6 per cent after the yogawear maker lifted its annual profit and revenue forecasts for a second time.

Walgreens Boots Alliance fell 7.4 per cent after the pharmacy chain said CEO Rosalind Brewer had stepped down.

Advancing issues outnumbered falling ones within the S&P 500 by a 2.1-to-one ratio.

The S&P 500 posted 28 new highs and 20 new lows; the Nasdaq recorded 84 new highs and 90 new lows. — Reuters