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The Dow, S&P 500 and Nasdaq are rising, while technology stocks are leading the way, with the Fed’s Powell on deck

Posted on by Taylor Reeves
The Dow, S&P 500 and Nasdaq are rising, while technology stocks are leading the way, with the Fed’s Powell on deck

U.S. stocks rose on Wednesday as the technology industry helped set the stage for new record highs and investors waited to hear guidance from Federal Reserve Chairman Jerome Powell on what’s next for interest rates.

The Dow Jones Industrial Average (^DJI) rose 0.6%, or over 200 points, while the S&P 500 (^GSPC) rose 0.3% after hitting an all-time closing high. The tech-heavy Nasdaq Composite (^IXIC) gained around 0.5%.

Salesforce (CRM) shares rose sharply in early trading after the software maker’s above-average quarterly sales boosted hopes for its AI products. Shares of Okta (OKTA) and Marvell (MRVL) also jumped on well-received earnings reports, setting a positive tone for the tech industry.

Anticipation is building for Powell’s later appearance in New York, and Wall Street is eager to find out whether growing confidence in a rate cut in December is justified. Fed officials have signaled support for further easing as they prepare for their final meeting of the year.

The central bank is widely expected to cut interest rates at its December 18 meeting. Traders see a nearly 74% chance of a 25 basis point cut, compared with about 66% a week ago, according to the CME FedWatch tool.

A measure of private payrolls showed that companies added 146,000 jobs in November, slightly below economists’ estimates and a slowdown from the downwardly revised 184,000 jobs in the previous month. The ADP data suggests that the labor market is weakening – but not too much. The report is one of several key economic releases this week and precedes Friday’s all-important monthly jobs report.

Investors also kept a close eye on political unrest in France after unrest in South Korea depressed stock prices there. French MPs will vote on a motion of no confidence that could lead to the fall of the government. Meanwhile, the South Korean president is now facing impeachment proceedings after plunging the country into a political crisis by briefly declaring martial law.

In corporate news, UnitedHealth Group (UNH) paused its investor day after insurance unit UnitedHealthcare CEO Brian Thompson was fatally shot in Manhattan on Wednesday morning.

LIVE 3 updates

  • Ines Ferré

    Footlocker shares plunge 12% as retailer cuts forecasts, says spending trends have ‘moderated’

    Foot Locker (FL) shares plunged 12% in early trading after the footwear retailer cut its full-year forecast while missing third-quarter estimates, citing weak consumer demand.

    “After the back-to-school peak in August, consumer spending weakened and the advertising environment was stronger than expected,” the company said in its quarterly press release.

    The stock has fallen more than 30% since the beginning of the year.

  • Ines Ferré

    Stock prices rise as tech leads lead and Salesforce skyrockets

    U.S. stocks rose slightly on Wednesday as the technology sector rose, led by shares of Salesforce (CRM).

    The Dow Jones Industrial Average (^DJI) rose 0.4%, or about 200 points, while the S&P 500 (^GSPC) rose 0.3% after hitting an all-time closing high. The tech-heavy Nasdaq Composite (^IXIC) gained 0.7%.

    Salesforce (CRM) shares rose around 8% in early trading after the software maker’s quarterly revenue increase boosted hopes for its AI products.

    Investors await Fed Chairman Jerome Powell’s appearance in New York on Wednesday afternoon. Investors will be looking to his commentary for clues about the direction of Fed policymakers’ next rate move. The Fed’s final interest rate policy meeting of the year is scheduled for December 18th.

  • Jenny McCall

    Good morning Here’s what’s happening today.

    Economic data: MBA Mortgage Applications (week ending November 29); ADP Private Payrolls (November); S&P Global US Services PMI and US Composite PMI (November final); ISM Services Index (November); ISM Service Prices Paid (November); Factory orders and durable goods orders (October final)

    Earnings: American Eagle Outfitters (AEO), Campbell’s (CPB), ChargePoint (CHPT), Chewy (CHWY), Cracker Barrel (CBRL), Dollar Tree (DLTR), Five Below (FIVE), Foot Locker (FL), Hormel Foods (HRL ), RBC (RBC), Victoria’s Secret (VSCO)

    Here are some of the biggest stories you may have missed overnight and this morning:

    Why Wall Street is betting on a strong economy in 2025

    GM covers $5 billion in losses from China deals

    Wells Fargo gives S&P’s most optimistic forecast yet for 2025

    EU investigates Nvidia hardware bundling as part of review of Run:ai deal

    Marvell stock rises on boost to fourth-quarter AI sales forecast

    Stellantis chairman selects Apple CFO Maestri as the automaker’s new CEO

    Small caps should shine until the dollar’s wrecking ball strikes

    Wells Fargo is selling its San Francisco headquarters, WSJ reports

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