NEW YORK, Aug 31 — Wall Street stocks rebounded early today after a three-day sell-off sparked by Federal Reserve Chair Jerome Powell’s message that more interest rate hikes are in the pipeline.
The upward trend in equities “seems to run afoul of the macroeconomic headlines,” such as new data from payroll firm ADP showing American employers ratcheted back their hiring in August, said Briefing.com analyst Patrick O’Hare.
The report could be good news for the Fed as it battles surging prices, amid fears the strong labour market will cause a wage spiral and higher inflation.
Private jobs increased by 132,000 in August, less than half the pace of July, according to ADP. The data was released ahead of Friday’s all-important government employment report.
About 30 minutes into the trading session, the Dow Jones Industrial Average was up 0.2 per cent at 31,863.3.
The broad-based S&P 500 climbed 0.5 per cent to 4,007.09, while the tech-rich Nasdaq Composite Index advanced 1.1 per cent to 12,007.41.
In individual firms, home goods chain Bed Bath & Beyond saw its shares plunge 26.4 per cent as it announced layoffs, store closures and new financing. — AFP
