Wall Street’s main indexes were set to open higher on Monday on optimism around China reopening its borders, while signs of a cooling labor market boosted bets of a slower pace of interest rate hikes by the Federal Reserve.
After being clobbered in 2022 by rapid rate hikes, the benchmark S&P 500 (.SPX) and Nasdaq (.IXIC) snapped a four-week decline on Friday after a moderation in wage increases and a decline in U.S. services activity in December buoyed hopes of a less hawkish stance from the Fed.
“The number of jobs created is working its way down slowly and wages are starting to calm down. Both of those are important for inflation coming under control, without necessarily careening the U.S economy to a recession,” said Art Hogan, chief market strategist at B. Riley Financial.
The highly awaited U.S. Labor Department’s inflation report on Thursday is expected to show some moderation in year-on-year consumer prices in December.
This report’s information was first seen on REUTERS; to read more, click this link.
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