The S&P 500 was 1.8% higher in midday trading and on track to close out its first winning week in the last five. The Dow Jones Industrial Average was up 608 points, or 1.8%, at 33,538, as of 11:52 a.m. Eastern time, and the Nasdaq composite was 1.9% higher.. On the upside for them, it showed workers’ wage gains are slowing, which could mean easing pressure on the nation’s high inflation.
That yield tends to track expectations for Fed action, and more investors are betting the central bank will dial down the size of its next rate hike following Friday's data. “As long as wage gains are coasting to a sustainable altitude, the Fed might continue to throttle back its rate hikes,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.
The Fed has pulled its key overnight rate up to a range of 4.25% to 4.50% after it began last year at virtually zero.
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