Wall Street rises sharply on rate cut hopes

Credit: Reuters Studio
Published on June 7, 2019 - Duration: 01:01s

Wall Street rises sharply on rate cut hopes

Wall Street's major indexes shot higher Friday, as sharply slowing U.S. job growth boosted hopes for interest rate cuts while optimism about potential progress in U.S. trade fights with China and Mexico added to risk appetites.

Fred Katayama reports.

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Wall Street rises sharply on rate cut hopes

Stocks rose on Wall Street Friday on hopes of an interest rate cut.

The S&P 500 extended its winning streak into a fourth straight day, and it and the Dow posted their biggest weekly percentage gains this year.

A sharp slowdown in hiring in May had traders raising their bets that the Federal Reserve will start cutting rates in July.

Apex Fund Services head of US allocators, Christina Bartnikowski: SOUNDBITE: APEX FUND SERVICES HEAD OF US ALLOCATORS, CHRISTINA BARTNIKOWSKI (ENGLISH) SAYING: "Treasuries went down.

The payroll went down.

However, that means that the Fed may cut rates.

If the Fed cuts rates, more money can be allocated to the markets." Also lifting investor sentiment: The U.S. granted Chinese exporters two more weeks to get their goods into the country before raising tariffs.

That pushed up shares of trade-sensitive industrials like Boeing and Caterpillar.

Beyond Meat shares surged.

The plant-based burger manufacturer said it expects its revenue will more than double this year.

Apple, Microsoft and other tech stocks, which were among the hardest hit due to the rising trade tensions, gave the biggest boost to the major indexes.

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