U.S. stocks rose sharply yesterday, rebounding from the previous day’s rout, as energy shares bounced back amid a rally for oil prices and worries over Italy’s political crisis faded.
The U.S. added 178,000 private-sector jobs in May, ADP said Wednesday. April’s figure, meanwhile, was revised downward by 41,000 to 163,000, and March’s level was downwardly revised as well. Hiring was spread across industries and company size. Medium-sized businesses — those with 50 to 499 employees — added 84,000 jobs, while large businesses added 56,000 positions and small ones added 38,000 employees.
The U.S. grew economy grew a touch softer in the first quarter than originally reported, mainly because of a slower buildup in inventories. Gross domestic product was trimmed to an annual 2.2% pace from 2.3%.
The Federal Reserve’s Beige Book came out and the Fed said the U.S. grew “moderately” from late April to early May in their latest evaluation of the economy, indicating the central bank remains firmly on track to raise interest rates next month. Although companies have responded to chronic shortages of skilled workers by boosting pay and overall compensation, the Fed found that “wage increases remained modest” in most of the country.