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US markets gain despite weak jobs data

06 Sep 2014 Evaluate

The US markets closed higher on Friday, with the S&P 500 and Dow Jones Industrial Average recording their fifth consecutive weekly gains, as geopolitical tensions eased and lower-than-estimated jobs data fueled bets that Federal Reserve won’t rush to raise interest rates. The pace of hiring in the US downshifted in August to the slowest rate of the year. The US created just 142,000 jobs last month to mark the smallest gain since December. Employment gains for July and June were lowered by a combined 28,000. The unemployment rate meanwhile fell to 6.1% to match a six-year low, as more people stopped looking for work. The labor-force participation rate dipped to 62.8% from 62.9% to tie a 36-year low. The Fed is gauging the strength of the labor market as it winds down a bond-buying program and considers the timing of raising interest rates. Policy officials will next meet on September 16-17.

The Dow Jones Industrial Average added 67.78 points or 0.40 percent to 17,137.36, Nasdaq was up by 20.61 points or 0.45 percent to 4,582.90, while the S&P 500 ended higher by 10.06 points or 0.50 percent to 2,007.71. 

The Indian ADRs closed mixed on Friday; Infosys was up 0.50%, Dr. Reddy’s Lab was up by 0.16% and Wipro was up 0.14%. On the other hand, Tata Motors was down by 0.62% and HDFC Bank was down 0.26%.

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