Bold Take: Stock futures barely budge as bets on a December rate cut intensify—and the market’s mood swings already hint at a larger tug-of-war about future policy and growth.
Stock futures were little changed Wednesday night as investors grew more confident that a December interest-rate cut could be on the table.
Dow futures added 65 points, about 0.14%, while S&P 500 futures hovered near flat and Nasdaq 100 futures dipped slightly, down less than 0.1%.
In after-hours trading, Salesforce climbed more than 5% after delivering a stronger-than-expected revenue forecast. Five Below rose roughly 2% as its earnings surpassed Wall Street estimates.
Earlier, the latest ADP payroll data helped lift the Dow 30 Index by more than 400 points on the session, with the S&P 500 and Nasdaq Composite also closing higher by about 0.3% and 0.2%, respectively. The surprise drop in private payrolls for November was interpreted by investors as a sign that the Federal Reserve could be more inclined to cut rates at the December 10 meeting. The CME FedWatch tool reflected an 89% probability of a rate cut next Wednesday, a notable shift from just a few weeks ago.
Tech sentiment remained volatile even as AI-related names vie for leadership. The sector was the laggard within the S&P 500 as losses in Microsoft, Nvidia, and Broadcom weighed on performance. Microsoft stock dipped about 2.5% after The Information reported that Microsoft would lower its AI-related software sales targets. Microsoft contested the report, and the stock recovered from intraday lows.
Analyst Adam Turnquist of LPL Financial characterized rotation in the market as a possible sign of risk aversion taking root. He noted that the current cycle has moved from big-tech leadership toward defensive areas, suggesting a potential shift beyond a simple pullback from elevated levels. He urged close observation of whether this rotation signals a longer-term change in leadership or a temporary pause.
Investors also watched for updates on tariff policy under the Trump administration and potential impacts on the domestic labor market. Treasury Secretary Janet Yellen’s successor (the provided text mentions Scott Bessent as a placeholder) indicated at a summit that the administration expects to be able to replicate its tariff agenda even if a Supreme Court ruling challenges the current tariff framework.
In late trading, Salesforce, Five Below, and C3.ai were among notable movers:
- Salesforce shares rose about 2% after a mixed Q3 report but a stronger Q4 guidance, with per-share earnings of $3.25 excluding items on revenue of $10.26 billion, slightly below consensus on revenue but above on earnings. The full-year revenue outlook was raised.
- UiPath jumped about 9% after Q3 results beat on both earnings and revenue, aided by higher-than-expected guidance.
- Snowflake declined over 6% despite beating top- and bottom-line estimates, issuing a softer outlook for product revenue growth in the January quarter.
For the comprehensive list of movers after hours, follow the linked coverage.
— Pia Singh
12 Hours Ago
U.S. stock futures open little changed
