The main U.S. stock indexes closed higher Wednesday after investors, traders and speculators sorted another set of employment data. Market participants seem encouraged by the prospect of at least one more rate cut by the Federal Reserve as another record-setting earnings season winds down.
The ADP National Employment Report has all but sealed a rate cut at the next Fed meeting. Private-sector payrolls were down 32,000 in November vs a FactSet-compiled consensus forecast for 40,000 new jobs. The probability the central bank trims the target range for the federal funds rate by 25 basis points next week is 89.0%, up from 88.0% on Tuesday, according to CME FedWatch.
