The Dow Jones Industrial Average gained 0.86 per cent, the S&P 500 rose 0.30 per cent and the Nasdaq Composite dropped 0.17 per cent

Global shares rose while U.S. Treasury yields dropped after weak economic data strengthened expectations of a U.S. central bank interest rate cut.

U.S. stock indexes closed higher, with energy, financials and industrials stocks topping gains while technology and utilities shares were the main drag.

The Dow Jones Industrial Average gained 0.86 per cent, the S&P 500 rose 0.30 per cent and the Nasdaq Composite dropped 0.17 per cent.

The European STOXX 600 index added 0.13 per cent, with London’s FTSE index finishing down 0.10 per cent and Germany’s DAX added 0.59 per cent. MSCI’s gauge of stocks across the globe advanced 0.40 per cent.

We are expecting to see a continued rebound because the companies that have been the leaders up until the summer seem to have paused and they’re bouncing off support levels, and so it still looks very productive and positive for the rest of the year, said Tom Plumb, chief executive and portfolio manager at Plumb Funds in Madison, Wisconsin.

Data showed that U.S. private employment decreased by 32,000 jobs last month.

The yield on benchmark U.S. 10-year notes dropped 2.9 basis points to 4.059 per cent. The 2-year note yield, which typically moves in step with central bank expectations, dropped 3 basis points to 3.489 per cent.

Markets are pricing in an 89 per cent probability of a 25-basis-point interest rate cut at the central bank’s next meeting, according to the CME’s FedWatch tool.

The consensus is that the Fed is going to lower the interest rate next week and I don’t see any reason to question that at this point, Plumb added.