NEW YORK -- Stocks soared, led by computer-related and financial shares, after a government jobs report today eased concern that wage inflation would prompt the Federal Reserve to raise interest rates for a third time this year. Dow up 235;
Nasdaq soars 109The Standard & Poor's 500 index had its biggest rally of the year and the Nasdaq composite index its largest one-day point gain ever. More than three stocks rose for every one that fell on the New York Stock Exchange, the broadest advance of 1999.
The Dow Jones industrial average rose 235.24, or 2.2 percent, to 11,078.45, its first close above 11,000 in a week.
J.P. Morgan & Co., up $7.871/2 to $133.81, led the advance. The S&P 500 jumped 38.13, or 2.9 percent, to 1,357.24. The Nasdaq climbed 108.87, or 4 percent, to 2,843.11.
Advancers outnumbered decliners by a 13-to-4 margin on the NYSE, with 2,283 up, 675 down and 510 unchanged. NYSE volume totaled 660.83 million shares vs. 690.17 million yesterday.
The NYSE composite index gained 14.56 to 625.89, the American Stock Exchange composite index rose 7.18 to 786.39 and the Russell 2000 index of smaller companies gained 8.55 to 435.97.
The price of the benchmark 30-
year Treasury bond rose 1 19/32 point, or $15.94 per $1,000 in face value. Its yield fell to 6.02 percent from 6.13 percent.
The government said today that U.S. unemployment fell to 4.2 percent in August, tying a 29-year low, At the same time, the pace of hiring slowed and wages increased less than expected, suggesting fears of accelerated inflation may be exaggerated.
The economy added 124,000 jobs last month, about half of analysts' expectations and less than a third of July's gain of 338,000, Labor Department figures showed. The smaller August increase reflected losses of factory and construction jobs and a rise in service employment that trailed this year's average. July's unemployment rate was 4.3 percent.
Workers' average hourly earnings rose 0.2 percent to $13.30 in August, less than July's 0.3 percent increase. The July figure was also revised lower by the government from an initial estimate of a 0.5 percent gain.
"It's a weak enough number to take heat off the Fed for a tightening in October," said Suzanne Rizzo, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York.
Leading the S&P 500's advance, Microsoft Corp. rose $4.06 to $95.871/2 and Intel Corp. jumped $4 to $89.31.
Computer issues are among the biggest beneficiaries of stable or lower rates.