Wall Street opens higher as weak employment data ramp up rate cut expectations

Major equity indexes in the U.S. started the day in the positive territory on Friday boosted by heightened odds of Fed rate cuts and renewed trade optimism. As of writing, the Dow Jones Industrial Average and the S&P 500 were both up 0.7% on a daily basis while the Nasdaq Composite was adding 1.15%.

Earlier today, the data published by the U.S. Bureau of Labor Statistics showed that total nonfarm payroll employment increased 75,000 in May to fall short of the market expectation of 185,000. Following the data, the CME Group FedWatch showed that the probability of a rate hike in July rose to 75%.

Meanwhile, commenting on the trade dispute with the U.S. during a press conference in Russia, Chinese President Xi said that they should find a solution despite the disagreements that they have. 

Among the 11-major S&P 500 sectors, the Technology and the Utilities indexes are both adding more than 1% to lead the rally. The rate-sensitive Financials Index, on the other hand, was virtually unchanged on the day.