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* Weak U.S. employment report casts pall over economy
* Traders boost bets on Fed rate cuts
* U.S. gives Chinese exporters more time before higher
tariffs
* Tech sector provides biggest boost
* Indexes up: Dow 1.17%, S&P 1.17%, Nasdaq 1.71%
(Updates prices to late afternoon, adds commentary, New York
dateline, changes byline)
By Sinéad Carew
New York June 7 (Reuters) - Wall Street's main indexes rose
about more than 1% on Friday, as a sharp slowdown in U.S. job
growth raised hopes of Federal Reserve interest rate cuts and
Washington's decision to delay tariffs on Chinese goods adding
to an appetite for risk.
The S&P 500 .SPX was on track for a 4.6% gain for the
week, which would be its biggest since November.
A Labor Department report showed nonfarm payrolls increased
by 75,000 jobs last month, much smaller than the 185,000
additions estimated by economists in a Reuters poll, suggesting
the loss of momentum in economic activity was spreading to the
labor market. Investors took the jobs miss as a sign that the Fed would
turn more accommodative to blunt the impact of escalating trade
tensions on the economy. Traders raised their bets for a rate
cut in July followed by two more rate cuts by year-end. MMT/
"It plays into a softening growth picture and perhaps lends
more credence to additional rate cuts potentially above what the
market's looking for right now," said Ryan Larson, head of U.S.
equity trading at RBC Global Asset Management in Chicago.
"You're getting a backdrop where you're seeing a more
accommodative Fed and potential progress on trade."
At 2:51PM ET, the Dow Jones Industrial Average .DJI rose
299.96 points, or 1.17%, to 26,020.62, the S&P 500 .SPX gained
33.26 points, or 1.17%, to 2,876.75 and the Nasdaq Composite
.IXIC added 129.96 points, or 1.71%, to 7,745.51.
Also adding to optimism was a notice from U.S. officials
granting Chinese exporters two more weeks to get their products
to the United States before raising tariffs on those items.
But while U.S. President Donald Trump said there was a "good
chance" of a US-Mexico trade deal, if the two countries failed
to make an agreement he plans to impose a 5% tariff on Mexican
imports on Monday. "An interest rate cut is being priced into the market, but
in order to go higher you do need to get progress on the trade
front because in the longer term that is the bigger issue for
markets," said Larry Adam, chief investment officer at Raymond
James in Baltimore, Maryland.
Technology stocks .SPLRCT , among the hardest hit due to
the recent escalation in trade tensions, rose 2% and provided
the biggest boost.
The sector was lifted by gains in Apple Inc AAPL.O ,
Microsoft Corp MSFT.O , Mastercard MA.N and Visa V.N .
Chipmakers, which get a major portion of their revenue from
China, also gained, with the Philadelphia chip index .SOX
rising 1%.
Tariff-sensitive industrials .SPLRCI rose 1% with Boeing Co
BA.N its biggest boost. Caterpillar Inc CAT.N rose about 1%.
Interest-rate sensitive bank stocks .SPXBK dropped 0.9%.
The broader financial index .SPSY dipped 0.07% and utilities
.SPLRCU fell 0.3% - the only major S&P sectors in the red.
Beyond Meat Inc BYND.O shares surged 38.4% after the maker
of plant-based burgers said it expects to more than double its
revenue and report breakeven EBITDA this year. Advancing issues outnumbered declining ones on the NYSE by a
3.41-to-1 ratio; on Nasdaq, a 1.98-to-1 ratio favored advancers.
The S&P 500 posted 116 new 52-week highs and no new lows;
the Nasdaq Composite recorded 98 new highs and 93 new lows.