NEW YORK: The S&P 500 ended higher on Friday after a jump in unemployment cemented expectations of a pause in interest rate hikes this month, while shares of streaming firms tumbled due to a rate dispute between Disney and Charter Communications.
The Labor Department’s report showed the August unemployment rate rose to 3.8% while wage growth slowed. Nonfarm payrolls rose more than expected, though data for July was revised lower to 157,000 job additions.
The data added to recent macroeconomic evidence that the Federal Reserve is winning its battle against inflation, and it cemented expectations the central bank is near the end of its interest rate hiking cycle.
“The data makes the case for the Fed becoming more dovish as we head into the fall. If the end of tightening comes sooner than later, that could lead to a substantial rally in stocks,” said Keith Buchanan, a portfolio manager at GLOBALT Investments in Atlanta.
Interest rate futures suggest traders see a 93% chance the Fed will keep interest rates unchanged at its meeting later this month, according to CME’s FedWatch tool.
Walt Disney and Charter Communications fell after the companies traded salvos over an unresolved distribution agreement after several channels, including ESPN, went dark on Thursday for customers of Charter’s Spectrum cable service.
Other streaming companies also fell, including Warner Bros Discovery, Paramount Global and Fox Corp .
Tesla dropped after the EV maker cut prices for its Model S and Model X vehicles in the US Unofficially, the S&P 500 climbed 0.18% to end the session at 4,515.74 points.
The Nasdaq declined 0.02% to 14,031.82 points, while Dow Jones Industrial Average rose 0.34% to 34,838.47 points.
The US stock market will remain closed on Monday for the Labor Day holiday.
Broadcom fell after the chipmaker projected current-quarter revenue below expectations, while Dell Technologies surged after the personal computer maker raised its annual forecasts for revenue and profit.
Lululemon Athletica gained after the yogawear maker lifted its annual profit and revenue forecasts for a second time.
Walgreens Boots Alliance slipped after the pharmacy chain said CEO Rosalind Brewer had stepped down.
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