US stocks higher as rate rise prospects diminish

  • 5 October 2015
  • From the section Business
NYSE trader Image copyright EPA

(Close): Shares on Wall Street rose strongly after last week's weak jobs figures were seen as delaying any move by the Federal Reserve to lift rates.

The disappointing jobs figures mean analysts are now not expecting any rate rise until December at the earliest.

The Dow Jones Industrial Average rose 304.06 points, or 1.9%, to 16,776.43.

The S&P 500 climbed 35.69 points to 1,987.05, while the Nasdaq Composite was up 73.49 points at 4,781.26.

"A few days ago, people were very worried that the Fed would engage in a policy mistake and hike rates," Alan Skrainka, chief investment officer at Cornerstone Wealth Management told AFP. "Today, they're feeling a little better that that's not going to happen."

Shares in General Electric jumped 5.3% after Nelson Peltz's Trian Fund Management revealed it had bought $2.5bn of the company's shares since May, taking its total stake to 1%.

Twitter shares rose 7% after the company confirmed that co-founder Jack Dorsey had been confirmed as its permanent chief executive.

Aluminium giant Alcoa rose 9.4% after signing a $1bn deal with Airbus to supply fasteners.

Of the losers, drug manufacturer Valeant Pharmaceuticals International fell more than 10% after a New York Times story which highlighted its price increases and their effects on patients.