Particle.news
Download on the App Store

Markets Price Near-Certain Fed Cut After ADP Job Loss, Stocks Hold Near Records

With official reports delayed by the shutdown, traders are leaning on mixed labor readings, leaving stocks hovering near records.

Overview

  • Fed funds futures put the odds of a 25 basis point cut next week around 85% to 90%, according to CME FedWatch.
  • ADP reported a November decline of about 32,000 private jobs, a sharp miss versus forecasts for gains and the biggest drop in more than two and a half years.
  • Other labor gauges were mixed as initial jobless claims fell to a more than three‑year low while a Chicago Fed estimate kept unemployment near 4.4% and Challenger data showed elevated layoffs.
  • Data gaps from the recent shutdown mean investors are waiting for Friday’s PCE inflation release, with the official November payrolls report scheduled after the Fed meeting.
  • U.S. indexes finished near flat and close to record highs with sector‑level swings, including pressure on AI‑exposed stocks after a disputed Microsoft sales‑quota report, gains for Meta and Salesforce, and a drag from Amazon.