US stocks rose on Wednesday, as technology helped pave the way to new highs and investors waited to hear from Federal Reserve Chairman Jerome Powell for clues on what’s next for interest rates.
The Dow Jones Industrial Average (^DJI) rose 0.6%, or more than 200 points, while the S&P 500 (^GSPC) added 0.3% in the wake of an all-time closing high. The Nasdaq Composite (^IXIC) rose about 0.5%.
Salesforce (CRM) stock rose in early trading after the software maker’s quarterly revenue raised hopes for its artificial intelligence products. Shares of Okta (OKTA) and Marvell (MRVL) also jumped amid well-received earnings reports, setting a positive tone for technology.
Anticipation is building for Powell’s appearance in New York later, with Wall Street keen to see whether growing confidence in a December rate cut is justified. Fed officials have signaled their support for further easing as they prepare for their final meeting of the year.
The central bank is widely expected to cut interest rates at its meeting scheduled for December 18. Traders expect odds of up to 74% for a 25 basis point cut, compared to about 66% a week ago, according to the bank’s report. CME FedWatch tool.
The private payrolls reading showed companies added 146,000 jobs in November, slightly below economists’ estimates and slowing from a downwardly revised reading of 184,000 jobs the previous month. ADP data suggests the job market is declining — but not by much. This report is one of several major economic releases this week, leading up to the all-important monthly jobs report on Friday.
Investors are also watching political turmoil in France after unrest in South Korea sent stocks there lower. French lawmakers are set to vote on a no-confidence motion that could bring down the government. Meanwhile, South Korea’s president is now facing accountability after throwing the country into a political crisis by briefly declaring martial law.
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