U.S. equity futures pointed to a mildly higher start on Wednesday, suggesting Wall Street may continue the upswing that has unfolded over the past several sessions.
The renewed momentum has helped major benchmarks rebound from the sharp pullback earlier in the month, with investors appearing less troubled by valuation concerns that previously dragged the Nasdaq and S&P 500 to multi-week lows.
Optimism around the possibility of a December rate cut from the Federal Reserve remains a key driver. Futures held their ground even after the release of several upbeat economic indicators that might otherwise have tempered expectations for policy easing.
Fresh data from the Commerce Department showed a stronger-than-expected 0.5% rise in September durable goods orders, building on an upwardly revised 3.0% increase in August. Economists had been looking for a more modest 0.3% gain.
At the same time, weekly jobless claims unexpectedly dipped, falling to 216,000—6,000 fewer than the prior week’s revised figure—defying expectations for a slight increase.
Stocks staged a solid rally on Tuesday after a shaky start, with all three major indices finishing in the green. The Dow climbed 664.18 points, or 1.4%, to 47,112.45. The S&P 500 advanced 0.9% to 6,765.88, while the Nasdaq rose 0.7% to 23,025.59. The gains marked the third consecutive positive session, further trimming the losses accumulated earlier in November.
Traders welcomed dovish remarks from Federal Reserve policymakers and a batch of economic updates that showed retail sales rising less than predicted and producer prices holding steady with expectations. Additional labor market data from ADP indicated that private employers shed an average of 13,500 jobs per week in the four weeks ending November 8th—well above the prior period’s average.
Consumer sentiment also deteriorated, with the Conference Board’s index dropping sharply to 88.7 in November from a revised 95.5 in October.
Despite the mixed signals, rate-cut wagers accelerated. CME’s FedWatch tool shows markets now pricing in an 82.7% chance of a quarter-point cut next month, up from roughly 50% a week ago.
Housing stocks were among the session’s standout performers on Tuesday. The Philadelphia Housing Sector Index jumped 4.2%—its strongest close in nearly four weeks—after pending home sales unexpectedly increased in October.
Airlines also saw notable gains, with the NYSE Arca Airline Index rising 3.9%. Strength extended across multiple sectors, including pharmaceuticals, healthcare, and networking names.
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