Market Momentum Builds Ahead of Fed Chair’s Key Address
The US stock market rallied on Wednesday, driven by gains in the tech sector, as investors eagerly awaited Federal Reserve Chair Jerome Powell’s speech for insights into the future of interest rates. The Dow Jones Industrial Average surged 0.6%, or over 200 points, while the S&P 500 added 0.3% to build on its recent all-time high. The tech-heavy Nasdaq Composite led the charge, climbing 0.8%.
Tech Stocks Shine Bright
Salesforce shares skyrocketed in early trading, jumping around 8% after the software maker’s quarterly revenue exceeded expectations, sparking optimism about its artificial intelligence products. Okta and Marvell also saw significant gains, thanks to well-received earnings reports, setting a positive tone for the tech sector.
Fed Rate Cut Anticipation Grows
Market anticipation is building for Powell’s speech, with investors seeking clues about the likelihood of a December rate cut. Fed officials have hinted at supporting further easing, and traders are pricing in a 74% chance of a 25 basis point cut, up from 66% last week.
Private Payrolls Data Reveals Softening Labor Market
A reading on private payrolls showed that firms added 146,000 jobs in November, slightly below economist estimates and a slowdown from the previous month. While the labor market appears to be softening, the ADP data suggests it’s not too severe.
Global Economic Uncertainty
Investors are also keeping a close eye on political turmoil in France, where lawmakers will vote on a no-confidence motion that could bring down the government. Meanwhile, South Korea’s president faces impeachment after plunging the country into a political crisis by briefly declaring martial law.
Corporate News Roundup
UnitedHealth Group halted its investor day after the CEO of its insurance unit, UnitedHealthcare, was fatally shot in Manhattan. Foot Locker shares tumbled 12% after the footwear retailer cut its full-year guidance and missed third-quarter estimates, citing weak consumer demand.
Earnings Season Continues
A slew of companies reported earnings, including American Eagle Outfitters, Campbell’s, ChargePoint, and more. Investors will be closely watching these reports for signs of strength or weakness in the economy.
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