US stock futures rose on Wednesday as investors looked to data on the health of the labor market for clues to the Federal Reserve’s next policy move.
Tuesday’s soft reading on jobs openings bolstered optimism for a Fed pivot to cutting interest rates, and markets are pricing in at least 100 basis points of cuts next year. But doubts about policy remain, with strategists warning those bets look “overdone.”
Given that, investors will watch for the ADP private-payrolls numbers due later Wednesday, ahead of Friday’s important monthly jobs report. They will be looking out for signs of weakness in the labor market that could persuade the Fed to change course.
Meanwhile, bitcoin (BTC-USD) briefly surged past $44,000 as more retail investors dived in and embraced hopes for rate cuts and coming spot bitcoin ETFs. The leading digital asset has since given up those gains, coming off notching a six-day win streak, its longest since May, on Tuesday.
Investors will get a window into America’s largest banks later when the CEOs of JPMorgan Chase (JPM), Goldman Sachs (GS), and Bank of America (BAC), among others, give testimony before the Senate’s banking committee.