U.S. stock futures rose on Wednesday as technology helped pave the way for new record highs and investors awaited word from Fed Chairman Jerome Powell for clues on what’s next for interest rates.
Dow Jones Industrial Average futures () rose 0.5%, or more than 200 points, while S&P 500 futures () added 0.3% after hitting an all-time high. Contracts on the tech-heavy Nasdaq 100 () led the way with a 0.7% gain.
Salesforce (CRM) shares rose about 13% in pre-market trading after the software maker’s quarterly revenue boosted hopes for its AI products. Shares of Okta (OKTA) and Marvell (MRVL) also rose on well-received earnings reports, setting a positive tone for tech companies.
Expectations are growing for Powell’s appearance later in New York, with Wall Street eager to know whether growing confidence in a December rate cut is justified. Fed officials have expressed support for more easing as they prepare for their final meeting of the year.
The central bank is widely expected to cut interest rates at its December 18 meeting. Traders see a nearly 74% chance of a 25 basis point cut, compared to about 66% a week ago, according to the CME FedWatch tool.
A private payrolls reading in November is in the spotlight after vacancy data suggested the labor market is softening, but not too much. The ADP report highlights a busy Wednesday with PMIs and other economic releases, leading into Friday’s all-important monthly jobs report.
Investors also kept a close eye on political unrest in France after unrest in South Korea dragged down stocks there. French lawmakers will vote on a vote of no confidence that could topple the government. Meanwhile, South Korea’s president now faces impeachment after plunging the country into political crisis by briefly declaring martial law.
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Live stock market coverage for Wednesday, December 4, 2024
