Highlights
Weak ADP employment data bolstered expectations for a Federal Reserve rate cut this month and pushed stocks broadly higher and depressed bond yields Wednesday.
The Dow Jones industrial average gained 0.9 percent, the S&P 500 edged up 0.3 percent , and the Nasdaq firmed 0.2 percent. US Treasury yields and the dollar declined while oil prices rose.
News from ADP that private payrolls fell by 32,000 in November, below expectations for a gain of 20,000, renewed rate cut expectations and fueled demand for risk assets. The market also seized on a lower prices index in the monthly ISM services report as a sign of diminished inflation.
Megacaps and big technology shares bounced back from early weakness on dip-buying to boost the major indexes. Tesla was a notable winner after reports that President Trump may issue an executive order in 2026 aiming to accelerate growth of robotics. Microsoft lagged to hold back the indexes after a report that it was cutting its AI sales targets.
Among sectors, best were materials, energy, financials, consumer discretionary and health care. Lagging were utilities and information technology.
The Dow Jones industrial average gained 0.9 percent, the S&P 500 edged up 0.3 percent , and the Nasdaq firmed 0.2 percent. US Treasury yields and the dollar declined while oil prices rose.
News from ADP that private payrolls fell by 32,000 in November, below expectations for a gain of 20,000, renewed rate cut expectations and fueled demand for risk assets. The market also seized on a lower prices index in the monthly ISM services report as a sign of diminished inflation.
Megacaps and big technology shares bounced back from early weakness on dip-buying to boost the major indexes. Tesla was a notable winner after reports that President Trump may issue an executive order in 2026 aiming to accelerate growth of robotics. Microsoft lagged to hold back the indexes after a report that it was cutting its AI sales targets.
Among sectors, best were materials, energy, financials, consumer discretionary and health care. Lagging were utilities and information technology.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
