US stocks closed higher on Wednesday as fresh labour-market data strengthened expectations that the Federal Reserve will cut interest rates next week. The Dow Jones gained 408 points to finish at 47,882. The S&P 500 added 0.30% and the Nasdaq edged up 0.17%.
Private payrolls surprised to the downside, with ADP reporting a decline of 32,000 jobs in November. Economists had forecast a gain of 40,000. Despite the weak reading, markets interpreted the result as increasing the likelihood of a policy shift, with traders now pricing an 89% chance of a rate cut at the Fed’s 10 December meeting. Investors believe easier policy will support loan growth and help stabilise economic momentum.
Parts of the latest services data also pointed to a steady underlying economy, though attention remains firmly on the path of monetary policy.
Tech stocks under pressure
Microsoft was a drag on the market, sliding 2.5% after a report claimed the company had reduced software sales quotas tied to artificial intelligence. The stock later pared losses after the company pushed back on the report. The weakness spread across the broader AI complex. Nvidia and Broadcom declined, while Micron Technology dropped more than 2% as investors reassessed recent strength in the sector.
Analysts say the market is beginning to differentiate more sharply between companies that will benefit early from AI investment and those that may face higher debt levels or delayed returns from data-centre expansion.
Standout movers
Bitcoin continued to rebound, trading above $93,000 after its steep sell-off earlier in the week. In corporate news, Marvell Technology jumped nearly 8% after presenting strong data-centre growth projections. The rally was bolstered by the company’s announcement that it will acquire startup Celestial AI in a deal worth at least US$3.25 billion.
American Eagle Outfitters surged around 15% after lifting its full-year outlook, citing a strong start to the holiday shopping period.
Local outlook
Australian shares are poised to open higher, with SPI futures up 21 points, or 0.2%, at 8620. Australia’s trade balance is due at 11.30am and Bendigo Bank holds its investor day.
