Stock Futures Rise After Indexes Rebound on Bitcoin, Tech Gains; Private Payrolls Unexpectedly Decline in November

Stock futures pointed higher Wednesday, a day after major indexes resumed their winning ways with technology and cryptocurrency-tied stocks leading the charge, as investors shook off a poor private-payrolls reading. 

Futures associated with the benchmark S&P 500, blue-chip Dow Jones Industrial Average, and tech-heavy Nasdaq advanced 0.3%, 0.2%, and 0.2%, respectively. Yesterday, the three major stock indexes rose for the sixth time in seven sessions.

Investors seemed to take in stride the ADP employment reading for November, which indicated that private payrolls fell by 32,000 last month when an increase of 40,000 jobs was expected, with small businesses particularly hit hard. The report is the last month jobs reading for the Federal Reserve before its meeting on interest rates next week. The CME FedWatch tool points to an 89% likelihood the Fed will cut rates by a quarter-percentage point.

The yield on the 10-year Treasury note slipped to 4.05% from 4.09% at Tuesday’s close. The U.S. dollar index, which tracks the performance of the dollar against a basket of foreign currencies, fell 0.5% to 98.90.

WTI crude futures, the U.S. oil benchmark, rose 1.3% to $59.40 per barrel, and gold futures were 0.7% higher at $4,250 per ounce.

Bitcoin was trading above $93,000, up from its overnight low of around $91,000. Yesterday, the largest cryptocurrency rallied from below $85,500 after having suffered its worst day since March on Monday. Crypto-tied stocks Strategy (MSTR), MARA Holdings (MARA), Coinbase Global (COIN), and Robinhood Markets (HOOD) all rose between roughly 1.5% and 3% in premarket trading.

The Magnificent Seven large-cap technology stocks were mixed and little changed, with shares of Nvidia (NVDA), the world’s most valuable company, pointing nearly 1% higher after having recorded gains the first two days this week. Yesterday, the other six stocks in the group all rose except for Tesla (TSLA), which ended just 0.2% lower. The EV maker’s shares were up slightly early Wednesday.

Shares of Boeing (BA) and Intel (INTC), which were the top gainers in the S&P 500 yesterday with roughly 10% and 9% surges, were slightly higher and down nearly 1%, respectively, before the bell.

In post-earnings moves, American Eagle Outfitters (AEO) soared 12%, Marvell Technology (MRVL) jumped 9%, Dollar Tree (DLTR) rose 2%, GitLab (GTLB) dropped 9%, Macy’s (M) fell 7%, and CrowdStrike (CRWD) declined about 1%. Salesforce (CRM) stock rose 1% ahead of its results after the closing bell.