S&P 500 futures were flat this morning after the index closed up 0.37% yesterday. The Asian markets were up across the board today, but Europe’s STOXX 600 marginally declined in early trading. The mixed picture mirrors an argument on Wall Street about whether the U.S. Federal Reserve will cut interest rates in December—delivering a new round of cheaper money that will likely be good for stocks—or keep rates on hold as it battles inflation.
ADP’s private payrolls data came in yesterday with more job gains than expected, leading some to think that the job market remains relatively strong. That would reduce the likelihood that the Fed will cut. But others noted that the job growth was still slowing toward “stall speed,” the rate below which the economy creates fewer jobs than it loses.
