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Wall Street opens in green and the Dow Jones rises 1.06%

Wall Street It opened this Friday in green and the Dow Jones Industrials, its main indicator, gained 1.06% at the opening, when investors analyze the May employment report and celebrate that Republicans and Democrats have approved a ceiling bill of debt.

Eleven minutes after the start of trading on the New York Stock Exchange, the Dow Jones it rose to 33,412 units and the selective S&P 500 added 1.03% to 4,264 points.

For its part, the composite index of the Nasdaq market, in which the main technology companies are listed, gained 1.11% to 13,245 integers.

Nonfarm payrolls grew much more than expected in May, rising to 339,000, despite economists surveyed by Dow Jones expecting a more modest increase (just to 190,000).

The strength of the labor market presents a challenge for the Federal Reserve (Fed) which had hoped that its measures would cause the economy to slow down.

In May, the central bank raised its benchmark federal funds rate by a quarter of a percentage point to a range between 5% and 5.25%, its 10th consecutive increase aimed at reining in high inflation.

Fed officials have signaled that they are increasingly likely to keep interest rates unchanged at their June 13-14 meeting before preparing to raise them again later this summer.

But what is most immediate today is that Wall Street is pleased that the Senate approved a bill to raise the debt ceiling yesterday and that the bill is now on President Joe Biden’s desk awaiting the president’s final signature.

The House voted in favor of the measure on Wednesday, just days before a June 5 deadline set by the US Treasury secretary, Janet Yellen.

By sectors, the biggest gains on Wall Street were for raw materials and non-essential goods, which rose 2.19% and 1.9%, respectively, while the only loss was for public services, with a drop of 0.47%.

Among the 30 Dow Jones stocks, the only companies with losses were Verizon 3M (-3.71%) and UnitedHealthb (-0.13%), while the biggest gains were for Caterpillar (3.53%) and Nike ( 3.36%).

Source: Elcomercio

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