NEW YORK (AP) – U.S. and global stocks rose in morning Monday after a gloomy U.S. jobs report last week led investors to expect that the Federal Reserve will postpone its first interest rate increase in nearly a decade. Energy stocks rose along with the price of oil.
KEEPING SCORE: The Dow Jones industrial average rose 159 points, or 1 percent, to 16,632 as of 10:55 a.m. Eastern. The Standard & Poor’s 500 index added 21 points, or 1.1 percent, to 1,972 and the Nasdaq composite rose 42 points, or 0.9 percent, to 4,751.
European stocks rose even more. Germany’s DAX added 2.9 percent, France’s CAC-40 index jumped 3.8 percent and the U.K.’s FTSE 100 rose 2.7 percent.
ON HOLD: Last week’s jobs report, which showed that hiring slowed down in September, is being taken as positive by investors who want the Fed to postpone raising interest rates. The Fed next meets at the end of this month and again in late December. Ultra-low interest rates in place since the 2008 financial crisis have helped push up stock prices.
ANALYST’S TAKE: “The absolutely weak nonfarm payrolls data complicated the Fed’s resolve to raise rates this year,” IG analyst Bernard Aw wrote in a report. “The soft jobs numbers in the last two months certainly make October rate (increase) an even more unlikely endeavor.”