US stocks rose on Wednesday, as techs helped set the stage for fresh record highs and investors waited to hear from Federal Reserve Chair Jerome Powell for clues to what’s next for interest rates.
The Dow Jones Industrial Average (^DJI) climbed 0.6%, or over 200 points, while the S&P 500 (^GSPC) added 0.3% on the heels of an all-time closing high. The tech-heavy Nasdaq Composite (^IXIC) gained around 0.5%.
Salesforce (CRM) stock surged in early trading after the software maker’s quarterly revenue beat boosted hopes for its AI products. Shares of Okta (OKTA) and Marvell (MRVL) also jumped amid well-received earnings reports, setting a positive tone for techs.
Anticipation is building for Powell’s appearance in New York later, with Wall Street keen to find out whether growing confidence in a December rate cut is justified. Fed officials have signaled support for more easing as they prepare for their final meeting of the year.
The central bank is widely expected to lower rates at its Dec. 18 meeting. Traders see near 74% odds of a 25 basis point cut, compared with around 66% a week ago, per the CME FedWatch tool.
A reading on private payrolls showed firms added 146,000 jobs in November, slightly below economist estimates, and a slowdown from the downwardly revised 184,000 jobs in the prior month. The ADP data suggests the labor market is softening — but not too much. The report is one of several key economic releases this week, leading into the all-important monthly jobs report on Friday.
Investors were also keeping a watchful eye on political turmoil in France after upheaval in South Korea pulled stocks there lower. French lawmakers will vote on a no-confidence motion that could bring down the government. Meanwhile, South Korea’s president now faces impeachment after plunging the country into political crisis by briefly declaring martial law.
In corporate news, UnitedHealth Group (UNH) halted its investor day after the CEO of insurance unit UnitedHealthcare, Brian Thompson, was fatally shot in Manhattan on Wednesday morning.
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