Wall Street surges as key report shows pullback in hiring Boston 25 News [Video]

Stocks are rising on Wall Street Friday following a government report showing job growth rose modestly in April, a sign that persistently high interest rates may be starting to take a bigger toll on the world’s largest economy.

The S&P 500 was 1.1% higher in afternoon trading and on track to erase its losses for the week. The Dow Jones Industrial Average gained 425 points, or 1.1%, as of 12:15 p.m. Eastern. The Nasdaq composite added 1.9%.

The nation’s employers added 175,000 jobs last month, down sharply from the blockbuster increase of 315,000 in March. It was also well below the 233,000 gain that economists had predicted. April’s average hourly earnings also rose less than expected. The report suggests that the Federal Reserve’s aggressive streak of rate hikes may finally be cooling the pace of hiring.

“The demand for labor is slowing, which will eventually ease inflation pressures, giving the Fed some leeway to cut …