U.S. stock futures traded largely flat on Wednesday evening following another advance on Wall Street, as weaker economic data strengthened expectations of an interest rate cut by the Federal Reserve next week. S&P 500 futures were little changed, Nasdaq 100 futures dipped 0.1%, and Dow futures edged up 0.1%.
During the regular session, the Dow Jones Industrial Average climbed 0.9%, while both the S&P 500 and the Nasdaq closed modestly higher. A surprisingly weak ADP report showed U.S. private-sector employment fell by 32,000 in November, raising concerns about slowing labor-market conditions and pushing market-implied odds for a quarter-point rate cut in December close to 90%.
At the same time, the ISM services index reached a nine-month high, while easing price pressures suggested inflation may be cooling. Together, these data points reinforced market expectations that the Fed could move toward a more accommodative policy stance.
Speculation surrounding the future leadership of the Federal Reserve also continued to build. Reports suggest the Trump administration may expedite the selection of a more dovish successor to current Fed Chair Jerome Powell, with Kevin Hassett seen as a leading candidate.