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ECONOMY

US stocks open higher after weak private payrolls figure

ISTANBUL

US stocks opened Wednesday higher after a weak private payroll figure suggested more interest rate hikes in the near term are less likely.

The Dow Jones was up 31 points, or 0.1%, to 33,033 at 9.34 a.m. EDT (1334GMT), while the S&P 500 was 10 points in the green, or 0.25%, to 4,240.

The Nasdaq, meanwhile, climbed 71 points, or 0.54%, to 13,130.

US private employment rose by 89,000 in September, much lower than market estimates of 153,000, the slowest growth since January 2021, the ADP Research Institute in collaboration with Stanford Digital Economy Lab said in a report released earlier Wednesday.

The weak figures suggest the Federal Reserve might take its foot off interest rate hikes this year, or make more rate cuts in 2024 than anticipated if the labor market continues softening further.

The VIX volatility index, also known as the fear index, fell 3.3% to 19.12, while the 10-year US Treasury yield lost 1.1% to 4.745%.

The dollar index was down 0.3% to 106.65, and the euro added 0.5% to $1.0513 against the greenback.

Precious metals were in the red, with gold falling 0.1% to $1,924 per ounce and silver losing 0.5% to $21.06.

Oil prices dove more than 2.6%, with global benchmark Brent crude at $88.51 per barrel and US benchmark West Texas Intermediate at $86.64.

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