Wall Street rebounded from a two-day sell-off Friday, as investors bet on interest rate reduction after the U.S. government released a worse-than-expected employment report.
The U.S. Labor Department reported the nation's employers cut 240,000 jobs in October, after a loss of 284,000 in September. The unemployment rate climbed to 6.5 percent, the highest level since March 1994 as payrolls tumbled. Economists had expected employers to cut 200,000 jobs in October and the unemployment rate to came as 6.3 percent.
The market estimated that the Federal Reserve might cut the interest rate by a half-percentage point at its December 16 meeting.
Ford Motor Co., the second-largest U.S. automarker, said it lost 129 million U.S. dollars in the third quarter after burning through 7.7 billion dollars in cash. The company also planned to cut additional 10 percent workforce by the end of January. General Motors also posted dismal quarterly results of negative adjusted cash flow of 6.9 billion dollars. GM tumbled 12 percent.
GM, Ford and Chrysler are reportedly seeking 50 billion dollars in federal loans to help them weather the ailing auto market.
The Dow Jones industrials rose 248.02, or 2.85 percent, to 8,943.81. The S&P 500 index added 25.87, or 2.86 percent, to 930.75,and the Nasdaq composite index rose 38.70, or 2.41 percent, to 1,647.40.
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