U.S. stock futures rose on Wednesday as investors looked to data on the health of the labor market for clues about the Federal Reserve’s next policy move.
S&P 500 (^GSPC) futures rose 0.2%, while Dow Jones Industrial Average (^DJI) futures rose 0.1%, or about 45 points. Nasdaq 100 (^NDX) futures rose 0.3% after indicators closed mixed.
Tuesday’s weak jobs numbers boosted optimism about a Fed turnaround on interest rate cuts, with markets pricing in cuts of at least 100 basis points next year. But doubts about the policy remain, and strategists warn that these bets appear “overblown.”
Read more: What the Fed’s pause on interest rate hikes means for bank accounts, CDs, loans and credit cards
With that in mind, investors will be watching for ADP’s private payroll numbers, due later on Wednesday, before the release of the key monthly jobs report on Friday. Eyes will be on the lookout for signs of weakness in the labor market that could prompt the Fed to change course.
Meanwhile, Bitcoin (BTC-USD) briefly rose above $44,000 as more retail investors jumped in, hoping for interest rate cuts and upcoming spot Bitcoin ETFs. The leading digital asset has since given up those gains, snapping a six-day winning streak on Tuesday, its longest since May.
Investors will get a glimpse into America’s biggest banks later when the CEOs of JPMorgan Chase (JPM), Goldman Sachs (GS) and Bank of America (BAC), among others, testify before the Senate Banking Committee.
Click here for a detailed analysis of the latest stock market news and events affecting stock prices.
Read the latest financial and business news from Yahoo Finance