US stocks rise as private payroll data comes in light, spurring more hope of Fed rate cuts

• US stocks rose on Wednesday as investors took in cooler private payrolls data.
• ADP said firms added just 103,000 jobs last month, lower than expected.

US stocks ticked higher on Wednesday as investors took in the latest private payrolls data and remained optimistic about monetary easing from the Federal Reserve.

Companies added 103,000 jobs in November, according to ADP's latest employment report, lower than the 128,000 jobs expected and down from 113,000 in the prior month. Meanwhile, pay rose 5.6% year over year, the smallest gain since September 2021.

While the ADP data isn't always a good indicator of the Labor Department's report, which is due Friday, a cooling job market is good news for stocks.

Central bankers have cited an overly hot labor market a a reason why interest rates may need to stay higher-for-longer, but slower hiring and wage growth could push the Fed to trim interest rates next year. Markets are now pricing in a 62% chance the Fed could lower rates by March, according to the CME FedWatch tool.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

• S&P 500: 4,589.18, up 0.48%

• Dow Jones Industrial Average: 36,267.51, up 0.40% (142.95 points)

• Nasdaq Composite: 14,315.40, up 0.60%

Here's what else is going on today:

• Stock market investors are betting on the "Magnificent Seven" and a slew of interest rate cuts in 2024, but they're bound to be disappointed, according to Morgan Stanley's CIO.
• Warren Buffett's Apple stake hit $177 billion in value as the iPhone maker's market cap reached $3 trillion.
• The China-based Tesla rival BYD is buying back its own shares to prevent a slump in its stock.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil fell 2.18% to $70.78 a barrel. Brent crude, the international benchmark, slipped 1.94% to $75.70 a barrel.
• Gold ticked 0.5% higher to $2,029.30 per ounce.
• The 10-year Treasury yield dropped one basis point to 4.157%.
• Bitcoin rallied 5.41% to to $44,193.