DJIA up 225.53 points (Il Sole 24 Ore Radiocor) - New York, 02 May - US shares were trading higher as investors put a positive spin on the Federal Reserve's decision to keep interest rates on hold and looked ahead to key jobs data and the latest earnings from Apple.

Wall Street ended mixed yesterday after the Fed flagged persistent inflationary pressure but signalled another rate hike was improbable.

In a press conference after the Fed decision, chair Jerome Powell cited a 'lack of further progress' in bringing inflation back down toward the central bank's 2% target as a reason for rates to remain at a 23-year high.

But he went on to say he did not think the next policy move would be a hike, calming growing concern rates might actually have to increase if price pressures are to be rooted out.

'I'd say it's unlikely,' he said.

Stubborn inflation has prompted the Fed to gradually put back the timetable for any rate cut and traders have already reduced expectations for the number of cuts they see this year.

In data today, unit labor costs in the first quarter rose above market estimates, pointing to possible ongoing pricing pressure with the US jobs market still resilient. While US factory orders rose 1.6% month on month in March, matching expectations.

The focus now shifts to tomorrow's key payrolls report.

Strong labor market readings have stoked worries that Fed officials may be forced to keep monetary conditions tight to see off inflation.

On the earnings front Apple will report its latest quarter after the market close. Investors will be keen to see how the iPhone maker is faring amid a slump in sales triggered in part by a sluggish Chinese market.

At 1612 GMT, the Dow Jones was up 225.53 points, or 0.59%, at 38,128.51 points.

The S&P 500 was 32.02 points, or 0.64%, higher at 5,050.41 points.

The Nasdaq was gaining 180.97 points, or 1.18%, at 15,790.14 points.

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(RADIOCOR) 02-05-24 19:43:21 (0657) 5 NNNN