Wall Street closes higher after nonfarm payroll data

The main indices of Wall Street closed in the green on Friday after reports that while US payrolls grew more than expected, wage increases slowed and service activity contracted, calming fears of more aggressive interest rate hikes from the US. Federal Reserve.

Las US Nonfarm Payrolls added 223,000 jobs in December, according to Labor Department data, while the 0.3% increase in median earnings was lower than expected and down from 0.4% the previous month.

In another data set, US services activity fell in December for the first time in more than two and a half years, as demand weakened, and with further signs of easing inflation.

“We have good news on the inflation front, with a slowdown in wage increases. Participation rates have risen again and we continue to create jobs. The economy comes out on top. On the other hand, the ISM services report was very weak overall,” said Megan Horneman, chief investment officer at Verdence Capital Management.

“This suggests that the Federal Reserve is nearing the end of what has been one of the most aggressive tightening cycles in decades. That is why markets are taking off,” he added.

According to preliminary data, the S&P 500 gained 86.34 points, or 2.27%, to 3,894.44, while the Nasdaq Composite rose 259.71 points, or 2.52%, to 10,564.95. The Dow Jones Industrial Average rose 694.21 points, or 2.11%, to 33,624.29.

All three averages posted gains for the week, with both the benchmark S&P and Nasdaq ending four declines.

Next week, several of the largest US banks, including JPMorgan and Bank of America, will kick off their fourth-quarter earnings season.