S&P futures experienced an uptick on Wednesday as market participants assessed the U.S. economic landscape, while bitcoin has sustained its rebound following a significant decline observed in the preceding weeks. Futures associated with the Dow Jones Industrial Average increased by 128 points, or 0.3%. S&P 500 futures gained 0.3%, while Nasdaq 100 futures increased by 0.2%. Stock futures moderated their gains following the unexpected report from payrolls processor ADP, which indicated a decline of 32,000 in private payrolls for November. Economists surveyed by Dow Jones anticipated an increase of 40,000 for the month.
In light of the challenging economic indicators, it appears that traders are positioning themselves with the expectation that the recent private job losses may secure a Federal Reserve rate cut during its final meeting of the year next week. Market participants exhibit a positive outlook regarding corporate earnings outcomes and are anticipating the Federal Reserve’s interest rate decision scheduled for December 10. Current market expectations indicate an approximately 89% probability of a rate cut in the forthcoming meeting, a significant increase compared to the probabilities observed in mid-November, as per reports. The major indexes experienced an uptick on Tuesday, driven by advancements in technology stocks, notably Nvidia rose and bitcoin gained, one day after the flagship cryptocurrency recorded its most significant decline since March.
The leading digital currency continued its upward trajectory on Wednesday, trading above $93,000. In premarket trading, shares of Marvell Technology are exhibiting notable activity increased by over 10% as market participants responded to its forecasts for data center expansion. American Eagle Outfitters also experienced an increase of over 13% following the retailer’s upward revision of its full-year forecast, indicating that the holiday shopping season commenced on a robust note. Investors are assessing the likelihood of a year-end rally, given that December trading has historically been favorable for U.S. stocks and considering that November was a disappointing month, with profit-taking leading to reduced valuations for certain high-flying names.
“I believe AI earnings will remain robust … We are likely to observe increased contributions from previously underperforming sectors, with indications that certain short-cycle industrials and other distressed areas are beginning to experience improved pricing power,” stated Ohsung Kwon “Power Lunch. I do not believe we are in a bubble at this point.”