After ending yesterday’s choppy trading session mostly higher, stocks are likely to see further upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
The futures remained positive following the release of a report from payroll processor ADP showing an unexpected decrease by U.S. private sector employment in the month of November.
ADP said private sector employment fell by 32,000 jobs in November after climbing by an upwardly revised 47,000 jobs in October.
Economists had expected private sector employment to inch up by 10,000 jobs compared to the addition of 42,000 jobs originally reported for the previous month.
The unexpected pullback by private sector employment may add to recent optimism about another interest rate cut by the Federal Reserve at its monetary policy meeting next week.
CME Group’s FedWatch Tool is currently an 88.8 percent chance the Fed will cut interest rates by another 25 basis points.
Buying interest may also be generated in reaction to a continued surge by Bitcoin, as the cryptocurrency is jumping by more than 2 percent after soaring on Tuesday.
Shortly before the start of trading, the Federal Reserve is scheduled to release its long-delayed report on industrial production in the month of September. Industrial production is expected to come in unchanged in September after inching up by 0.1 percent in August.
The Institute for Supply Management is also due to release its report on service sector activity in the month of November not long after the start of trading.
The ISM’s services PMI is expected to edge down to 52.1 in November from 52.4 in October, but a reading above 50 would still indicate growth.
Stocks fluctuated over the course of the trading session on Tuesday after an early move to the upside but largely maintained a positive bias. The major averages all ended the day in positive territory, regaining ground following the pullback seen during Monday’s trading.
The tech-heavy Nasdaq advanced 137.75 points or 0.6 percent to 23,413.67, the Dow climbed 185.13 points or 0.4 percent to 47,474.46 and the S&P 500 rose 16.74 points or 0.3 percent to 6,829.37.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index jumped by 1.1 percent, while China’s Shanghai Composite Index slid by 0.5 percent and Hong Kong’s Hang Seng Index slumped by 1.3 percent.
The major European markets are also on opposite sides of the unchanged line. While the U.K.’s FTSE 100 Index is down by 0.1 percent, the French CAC 40 Index is up by 0.1 percent and the German DAX Index is up by 0.3 percent.
In commodities trading, crude oil futures are surging $0.71 to $59.35 a barrel after slumping $0.68 to $58.64 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,251, up $30.20 compared to the previous session’s close of $4,220.80. On Tuesday, gold plunged $54.
On the currency front, the U.S. dollar is trading at 155.41 yen compared to the 155.85 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1670 compared to yesterday’s $1.1623.
Business News
U.S. Stocks May See Further Upside After Private Sector Jobs Data
2025-12-03 13:44:53
