US Stock Market Today: S&P 500 Rises 0.6% & NASDAQ Soars 0.9% After Tech Sell-Off as December Rate Cut Speculation Grows

Encouraging private-sector data further supported the market’s upward movement on Wednesday. ADP Research reported an increase of 42,000 jobs in October, following a revised decline of 29,000 jobs in September. 

This positive labor market data further fueled speculation that the Federal Reserve may consider cutting interest rates in December. Jamie Cox, managing partner at Harris Financial Group, noted that the latest data indicate a cooling labor market, which could prompt the Fed to take action in response.

In addition to employment data, service‑sector data further improved sentiment. The Institute for Supply Management reported that its non-manufacturing purchasing managers index (PMI) rose to 52.4 in October from 50.0 in September. New orders surged to their highest level since June. 

However, employment in services remained subdued, with the survey’s employment index at 48.2, a level indicating contraction. Economists warned that the ongoing government shutdown has created a data blackout, complicating the interpretation of the PMI

Investors interpreted the report as raising the likelihood of a December interest‑rate cut, though some cautioned that more data would be needed. Bret Kenwell of eToro remarked that the “big question is whether investors will find relief in these numbers or be disappointed by what they might mean for the Federal Reserve’s December decision.”