US: Stocks rise as Nasdaq soars to 13-month high

WALL Street stocks rose sharply on Friday (Jun 2) , closing out the week on a high following a bumper jobs report and a deal in Congress to avert a US debt default.

The stronger-than-expected employment report released Friday morning suggests the US economy remains strong despite concerted action from the Federal Reserve to suppress demand in order to bring down high inflation.

The passage of a debt limit deal through both houses of Congress appears to have eased market fears of a potentially catastrophic debt default as well, with Wall Street’s “fear gauge” sinking to its lowest level since before the Covid-19 pandemic.

The tech-rich Nasdaq Composite Index rose 1.1 per cent to finish the week on a new 13-month high of 13,240.77. 

The Dow Jones Industrial Average rose 2.1 per cent to 33,762.76, and the broad-based S&P 500 closed 1.5 per cent higher at 4,282.37.

The deal to suspend the US debt limit and the Goldilocks jobs report – neither too good nor too bad – suggests the US economy “is not facing an immediate risk of a recession,” Edward Jones investment strategist Angelo Kourkafas told AFP.

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“The mixed job reports that had something for both the doves and hawks suggests that they could possibly skip a hike in June and deliver more tightening if needed later in the year,” he added. AFP