US stocks rebound amid Yellen’s speech

New York, June 7 (IANS) US stocks ended higher as investors digested US Federal Reserve Chair Janet Yellen’s comments on the country’s economy.

The Dow Jones Industrial Average rose 113.27 points, or 0.64 percent, to 17,920.33 on Monday, Xinhua news agency reported.

The S&P 500 added 10.28 points, or 0.49 percent, to 2,109.41. The Nasdaq Composite Index was up 26.20 points, or 0.53 percent, to 4,968.71.

Fed Chair Janet Yellen said at the World Affairs Council of Philadelphia on Monday that the overall labor market is quite positive, although the recent slowdown in jobs bears “close watching.”

The US total nonfarm payroll employment increased by 38,000 in May, well below the market consensus of 158,000 and notching the fewest monthly job gain in almost six years.

Yellen said additional rate increases would still be appropriate but did not give a specific time period for the next hike.

“June is off the table. July hike only if economic data surprises to the upside over the next two months. The economic projections that accompany the June FOMC meeting will likely contain the most important information with regard to Fed thinking for the next month,” said Jay Morelock, an economist at FTN Financial.

–IANS

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