Experimental feature

Listen to this article

Experimental feature

US stocks climbed higher on Friday after data showing continued tightening in the labour market reinforced expectations for a Federal Reserve rate rise next week.

In early trading, the S&P 500 was up 0.4 per cent to 2,374.8, the Dow Jones Industrial Average gained 0.3 per cent to 20,923.7 and the Nasdaq Composite rose 0.4 per cent to 4,862.5.

Every major S&P 500 sector was in the black, with almost 90 per cent of companies listed on the benchmark index rising.

Sentiment got a lift from data showing the US added more jobs than Wall Street expected in February, with wage growth rebounding from a weak reading in January.

“The headline and detail of today’s data confirms the rock solid state of the US labor market,” said Ward McCarthy, chief financial economist at Jefferies, the investment bank.

The report solidified Wall Street expectations that the Fed will raise interest rate next week for the third time since the end of the financial crisis, Mr McCarthy said.

Treasury yields fell slightly on Friday after a sharp rise in the previous session. The 10-year yield dipped to 2.582 per cent, but still remained up by 10 basis points from a week ago. The more policy-sensitive two-year rate stat near a 2009 peak. Yields move in the opposite direction of prices.

Get alerts on US equities when a new story is published

Copyright The Financial Times Limited 2018. All rights reserved.

Comments have not been enabled for this article.

Follow the topics in this article