The Dow jumped 400 points at the close as upbeat ADP jobs data boosted expectations for Fed rate cuts

Stocks rose on Wednesday as fresh ADP employment data strengthened expectations that the Federal Reserve will cut interest rates next week.

The Dow Jones Industrial Average climbed 408.44 points (0.86%) to close at 47,882.90. The S&P 500 added 0.30% to finish at 6,849.72, while the Nasdaq Composite inched up 0.17% to 23,454.09.

ADP reported an unexpected decline of 32,000 private payrolls in November, compared with economists’ forecast for a 40,000 increase. Despite the weak reading, traders appeared to view the drop as increasing the likelihood of a rate cut at the Fed’s final meeting of the year on Dec. 10.
According to the CME FedWatch tool, markets now assign an 89% probability to a rate cut next Wednesday—significantly higher than mid-November levels. Expectations of lower rates boosted financial stocks such as Wells Fargo and American Express, as investors bet that cheaper borrowing could stimulate the U.S. economy.

There were also signs of underlying economic resilience, with U.S. services data coming in slightly above estimates.

Microsoft was a notable laggard, falling 2.5% following a report from The Information suggesting the company had reduced AI-related software sales quotas. The stock later pared some losses after Microsoft denied lowering quotas.
Other AI-linked names including Nvidia and Broadcom slipped in tandem, while Micron Technology also dropped more than 2%.

Bitcoin, meanwhile, extended its rebound—trading above $93,000—after logging its sharpest decline since March earlier in the week.
Marvell Technology surged nearly 8% on upbeat data center growth projections, while American Eagle Outfitters jumped around 15% after raising its full-year outlook, noting a strong start to the holiday shopping season.