Stocks rose strongly in New York yesterday as investors welcomed the latest indication that the US economy is slowing enough to prevent more interest rate increases. The brightening mood particularly helped banks and retailers.
The Dow Jones industrial average rose 154.51, or 1.5 per cent, to close at 10,635.98.
Broader stock indicators were also higher. The Nasdaq composite index rose 62.63, or 1.6 per cent, to 4,023.20 and The Standard and Poor's 500 index was up 22.23, or 1.5 per cent, at 1,478.90.
Advancing issues outnumbered declining ones by a 5-to-3 margin on the New York Stock Exchange, where volume came to 929.20 million shares, down from Thursday's pace.
The Russell 2000 index rose 4.90 to 528.22.
Stocks gained from the Labour Department report that showed American businesses added fewer jobs than expected in June. It presented the clearest evidence yet that the Federal Reserve was succeeding in its campaign to keep the economy from overheating.
Businesses added 206,000 jobs last month after cutting 165,000 positions in May, the Labour Department said. The unemployment rate fell to near a 30-year low of 4 per cent.
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