US stock futures held positive territory as traders anticipated a rate cut by the Federal Reserve. Market sentiment remained optimistic regarding a potential 25 bps rate cut, even with the release of a weaker-than-expected ADP report.
- US stock futures on the Dow Jones were up 0.2%.
- Traders are betting on a 25 bps rate cut by the Fed next week.
- The ADP report showed the US private sector unexpectedly shed 32K jobs in November.
Despite a disappointing jobs report, the Dow Jones is showing resilience, fueled by expectations of a forthcoming rate cut. This suggests that investors are prioritizing monetary policy easing over immediate economic data, potentially indicating a belief that lower rates will stimulate economic growth and benefit equities. The positive movement, though modest, reflects continued confidence in the market’s potential.