ISTANBUL

US stocks ended higher Thursday as data showing a weakening labor market bolstered expectations that the Federal Reserve would cut interest rates this month.

The Dow Jones Industrial Average rose 0.77%, or 350.06 points, to close at 45,621.29.

The Nasdaq went up 0.98%, or 209.97 points, to close at 21,707.69, while the S&P 500 increased 0.83%, or 53.82 points, to 6,502.08.

The Volatility Index (VIX), also known as the “fear index," dropped 6.42% to 15.30.

After data Wednesday from the Job Openings and Labor Turnover Survey (JOLTS) pointed to a decline in labor demand, data Thursday from payroll company ADP and the Department of Labor also showed that growth in the labor market has slowed.

Accordingly, private sector employment in the US increased by 54,000 jobs in August, falling well short of market expectations.

The number of people filing for unemployment benefits for the first time in the country also rose to 237,000 in the week ending Aug. 30, exceeding market expectations.

Nonfarm labor productivity in the US rose 3.3% in the second quarter of this year, exceeding forecasts.

Unit labor costs, one of the inflation indicators tracked by the Fed, rose 1% in the second quarter compared to the previous quarter, falling below forecasts.

Analysts said weak labor market indicators ahead of the release of nonfarm payrolls data Friday in the US have increased expectations that the Fed will cut interest rates this month.

The U.S. trade deficit rose 32.5% in July to $78.3 billion, reaching its highest level in four months.