The Dow Jones Industrial Average rose 0.6 percent to 46,002.50, while the broader S&P 500 rose 0.4 percent to 6,565.51.
The tech-heavy Nasdaq Composite Index rose 0.3 percent to 22,140.03 points.All three indexes had retreated late Thursday on fears of an artificial intelligence bubble and worries about interest rate cuts.
But shortly before trading began Friday, New York Fed President John Williams said at a conference in Chile that he still sees room for further rate cuts “in the near term.”
His comments came after a delayed report on the US labor market showed stronger hiring in September even as unemployment rose.
The report reinforced market expectations that the Fed could wait longer to cut rates as it monitors persistent inflation and pours cold water on hopes for a December rate cut.
Williams “has a big voice” on the Fed’s rate-setting committee, said Art Hogan of B. Riley Wealth Management.
“That’s important because I think the reduced potential for a rate cut in December has really come into full force over the course of the last three days,” Hogan added.For now, moods have brightened, although it remains to be seen whether the positive tone will continue, analysts said.
Among individual companies, shares in AI whistleblower Nvidia were still down about 0.7 percent in early trading.
Chip company Advanced Micro Devices also saw its shares fall by 0.9 percent.
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