Small-cap stocks powered higher Wednesday as expectations for a rate cut next week strengthened after weaker-than-expected private employment data.
The Russell 2000 climbed more than 1% by midday in New York, lifted by rising odds of a 25-basis-point cut at the Fed's Dec. 10 meeting. The CME FedWatch tool shows a 90% chance of a move, with odds of another cut in January near 30%.
The ADP report showed U.S. private employers shed 32,000 jobs in November, reversing the 42,000 added in October and missing forecasts for a 5,000 gain. The data reinforced signs the labor market is cooling.
Treasury yields fell on the growing rate-cut expectations.
Large Caps Lag Small Caps
The S&P 500 rose 0.2% and the Nasdaq 100 was flat.
Microchip Technology Inc. (NASDAQ:MCHP) jumped nearly 10% — the best performance in the S&P 500 — after the company raised its fiscal third-quarter earnings outlook.
Netflix Inc. (NASDAQ:NFLX) dropped 6% to an eight-month low after reports that U.S. officials are scrutinizing its potential takeover of Warner Bros. Discovery, compounded by a sizable stock sale from a company director.
Energy stocks outperformed as oil and natural gas prices advanced. Crude rose 0.7% to $59 a barrel, while natural gas gained 3.6% to $5 per million British thermal units, the highest since December 2022. Henry Hub prices remain elevated as rising LNG exports to Europe tighten domestic supply. Antero Resources Corp. (NYSE:AR) shares gained more than 4%.
In metals, gold held at $4,200 and silver was steady at $58.
In crypto, Bitcoin (CRYPTO: BTC) rose 1.3% to $92,500, aiming for a second straight gain after Monday's sharp selloff.
Wednesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % |
| • Russell 2000 | 2,497.77 | 1.3% |
| • Dow Jones | 47,777.27 | 0.6% |
| • S&P 500 | 6,845.75 | 0.2% |
| • Nasdaq 100 | 25,573.79 | 0.1% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) inched 0.2% higher to $628.05.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.6% to $478.19.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) flattened at $621.96.
- The iShares Russell 2000 ETF (NYSE:IWM) rallied 1.3% to $248.43.
- The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 1.7%; the Utilities Select Sector SPDR Fund (NYSE:XLU) lagged, down 0.2%.
Russell 1000’s Top 5 Gainers And Fallers On Wednesday
| Stock Name | % Change |
|---|---|
| Microchip Technology Incorporated | 9.42% |
| Circle Internet Group, Inc. (NYSE:CRCL) | 9.04% |
| ON Semiconductor Corporation (NASDAQ:ON) | 8.27% |
| Summit Therapeutics Inc. (NASDAQ:SMMT) | 7.48% |
| Alcoa Corporation (NYSE:AA) | 7.38% |
| Stock Name | % Change |
|---|---|
| Pure Storage, Inc. (NYSE:PSTG) | -26.38% |
| Acadia Healthcare Company, Inc. (NASDAQ:ACHC) | -14.46% |
| GitLab Inc. (NASDAQ:GTLB) | -13.79% |
| Alexandria Real Estate Equities, Inc. (NYSE:ARE) | -7.47% |
| SanDisk Corporation (NASDAQ:SNDK) | -7.05% |
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