Washington, Dec. 29 (BNA): Stocks rose in late morning trading on Wall Street on Thursday as investors reviewed the latest government update showing the labor market remains strong.
The S&P 500 is up 1.7% as of 11:31 AM ET. Nearly 95% of stocks within the benchmark index gained. It’s the latest volatility in what has been a volatile, holiday-shortened week for stocks.
The Dow Jones Industrial Average rose 341 points, or 1%, to 33,218, and the Nasdaq was up 2.5%, according to the Associated Press.
Tesla jumped 7.5% as it continued to recover from sharp losses on Tuesday following reports that production was temporarily suspended at a factory in Shanghai. The stock is still down 65% for the year.
While companies in the S&P 500 posted record profits this year, investors in the benchmark index will see a loss of nearly 20% in 2022, which would be its worst year since 2008.
Treasury yields were mixed. The yield on the 10-year Treasury fell to 3.85% from 3.89% late Wednesday. Markets in Europe were higher and markets in Asia were lower.
Investors focused on the Fed’s continued fight against stubbornly severe inflation. The central bank has been raising interest rates in an effort to stifle borrowing and spending and calm inflation, but the strategy risks going too far and sending the economy into recession.
This has put greater focus on a wide range of data for Wall Street as it tries to determine if inflation is cooling and how different areas of the economy are doing.
The latest update from the US shows that the number of people seeking unemployment benefits rose slightly last week. The labor market has been one of the strongest areas of the economy.
The Fed has already raised its key rate seven times this year and is expected to continue to raise interest rates in 2023. The key lending rate, the federal funds rate, stands in a range of 4.25% to 4.5%, and Fed policymakers expect the rate to reach A range of 5% to 5.25% by the end of 2023. Their forecast does not require a rate cut before 2024.
insignificant