U.S. Stocks Poised To Extend Recent Rebound

(RTTNews) - The major U.S. index futures are currently pointing to a modestly higher open for the markets on Wednesday, with stocks likely extend the upward move seen over the past few sessions.

The markets may continue to benefit from recent upward momentum, which has helped the major averages rebound strongly from the significant pullback seen earlier in the month.

Traders seem to have shrugged off the valuation concerns that recently weighed on the markets and dragged the Nasdaq and the S&P 500 down to their lowest levels in over two months.

While stocks have recently benefitted from renewed optimism about another interest rate cut by the Federal Reserve next month, the futures have remained positive even after the release of some upbeat U.S. economic data.

The Commerce Department released a long-delayed reported this morning showing new orders for U.S. manufactured durable goods increased by more than expected in the month of September. The report said durable goods orders climbed by 0.5 percent in September after spiking by an upwardly revised 3.0 percent in August.

Economists had expected durable goods orders to rise by 0.3 percent compared to the 2.9 percent surge that had been reported for the previous month.

A separate report released by the Labor Department showed an unexpected dip by first-time claims for U.S. unemployment benefits in the week ended November 22nd.

The Labor Department said initial jobless claims slipped to 216,000, a decrease of 6,000 from the previous week's revised level of 222,000.

Economists had expected jobless claims to inch up to 225,000 from the 220,000 originally reported for the previous week.

After showing a lack of direction early in the session, stocks moved notably higher over the course of the trading day on Tuesday. The major averages all moved to the upside, with the tech-heavy Nasdaq joining the Dow and the S&P 500 in positive territory after an initial pullback.

The major averages pulled back off their highs going into the end of the day but still posted strong gains. The Dow jumped 664.18 points or 1.4 percent to 47,112.45, the S&P 500 advanced 60.76 points or 0.9 percent to 6,765.88 and the Nasdaq climbed 153.59 points or 0.7 percent to 23,025.59.

With the upward move on the day, the major averages closed higher for the third straight session, further offsetting recent weakness.

The strength that emerged on Wall Street may have reflected renewed optimism about the outlook for interest rates following recent dovish comments from Federal Reserve officials as well as the latest U.S. economic data.

The Commerce Department released a report this morning showing retail sales in the U.S. increased by less than expected in September, while a separate report released by the Labor Department showed producer prices in the U.S. increased in line with estimates in September.

Meanwhile, payroll processor ADP released a report showing U.S. private sector employers shed an average of 13,500 jobs per week in the four weeks ending November 8th compared to an average loss of 2,500 jobs in the previous four-week period.

The Conference Board also released a report showing a substantial deterioration by U.S. consumer confidence in the month of November.

The report said the consumer confidence index tumbled to 88.7 in November from an upwardly revised 95.5 in October. Economists had expected the consumer confidence index to dip to 93.3 from the 94.6 originally reported for the previous month.

CME Group's FedWatch Tool indicates the chances the Fed will cut interest rates by another quarter point next month have surged to 82.7 percent from 50.1 percent a week ago.

Housing stocks moved sharply higher over the course of the session, driving the Philadelphia Housing Sector Index up by 4.2 percent to its best closing level in almost a month.

The rally by housing stocks came after the National Association of Realtors released a report showing an unexpected jump by pending home sales in the month of October.

Substantial strength was also visible among airline stocks, as reflected by the 3.9 percent surge by the NYSE Arca Airline Index.

Pharmaceutical, healthcare and networking stocks also saw significant strength, moving higher along with most of the other major sectors.

Commodity, Currency Markets

Crude oil futures are edging down $0.06 to $57.89 a barrel after tumbling $0.89 to $57.95 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,156.60, up $16.60 compared to the previous session's close of $4,140. On Tuesday, gold surged $45.80.

On the currency front, the U.S. dollar is trading at 156.59 yen compared to the 156.04 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1558 compared to yesterday's $1.1569.

Asia

Asian stocks rose for a third day running on Wednesday as weak U.S. economic data bolstered investor hopes for a Federal Reserve interest rate cut next month.

Gold hit a two-week high as the dollar and U.S. Treasury yields eased on rate cut expectations. Oil recovered some ground after closing at a one-month low in the previous session on signs a Ukraine-Russia peace deal is getting closer.

China's Shanghai Composite Index slipped 0.2 percent to 3,864.18 as Chinese state-backed property developer Vanke's bonds tumbled, reigniting market concerns about the company's recovery prospects and broader real-estate risks. China Vanke shares slumped 6.3 percent in Hong Kong.

Hong Kong's Hang Seng Index edged up by 0.1 percent to 25,928.08. Alibaba Group Holding shares fell 1.9 percent despite the e-commerce giant posting better than expected fiscal second quarter results.

Japanese markets rallied amid expectations of more Fed rate cuts. The Nikkei 225 Index jumped 1.9 percent to 49,559.07, while the broader Topix Index closed up 2 percent at 3,355.50.

The yen edged up following reports the Bank of Japan was preparing markets for a possible interest rate hike as soon as next month.

SoftBank Group shares surged 5.7 percent after the technology investor said Ampere has become its wholly owned subsidiary. Chip-testing equipment maker Advantest gained 2 percent and Uniqlo brand owner Fast Retailing added 1.8 percent.

Seoul stocks rose sharply after Finance Minister Koo Yun-cheol said that South Korea's economy is at a "turning point" that will shape its growth trajectory for a decade. He also pledged "decisive action" to curb excessive volatility in the foreign exchange market.

The Kospi surged 2.7 percent to 3,960.87, marking the highest daily close since last Thursday, when it finished at 4,004.85.

Market bellwether Samsung Electronics shot up 3.5 percent and its chipmaking rival SK Hynix rose 1 percent. Internet company Naver vaulted 4.2 percent ahead of a board meeting to approve its planned acquisition of Dunamu Inc.

Australian markets rose notably despite inflation for October coming hotter than expected. Core inflation exceeded estimates, denting near-term rate-cut hopes.

The benchmark S&P/ASX 200 Index climbed 0.8 percent to 8,606.50, with materials, healthcare and consumer discretionary stocks leading the charge. The broader All Ordinaries Index settled 0.9 percent higher at 8,899.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rose 0.6 percent to 13,562.01 after the Reserve Bank of New Zealand cut its benchmark official cash rate by 25 basis points to an over three-year low and signaled it was done easing.

Europe

European stocks traded higher on Wednesday, adding to the previous session's gains amid Fed rate cut hopes and signs of progress in talks to end the war in Ukraine.

CBS News reported that a common understanding on a peace deal brokered by the Trump administration to stop Russia's nearly four-year assault had been reached, with details still to be worked out.

It was said that Ukrainian President Volodymyr Zelenskyy could travel to the U.S. before the end of November to finalize an agreement.

Traders are also keeping an eye on developments in the U.K., as Chancellor Rachel Reeves delivered her budget after the details were released early by mistake.

While the U.K.'s FTSE 100 Index is up by 0.6 percent, the French CAC 40 Index is up by 0.5 percent and the German DAX Index is up by 0.4 percent.

Aroundtown, one of Germany's largest listed landlords, has slumped after announcing its nine-month 2025 results and confirming FY25 guidance.

Eastern Mediterranean-focused gas producer Energean has also moved to the downside after raising its annual net debt forecast.

U.S. Economic News

New orders for U.S. manufactured durable goods increased by more than expected in the month of September, according to a report released by the Commerce Department on Wednesday.

The Commerce Department said durable goods orders climbed by 0.5 percent in September after spiking by an upwardly revised 3.0 percent in August.

Economists had expected durable goods orders to rise by 0.3 percent compared to the 2.9 percent surge that had been reported for the previous month.

Excluding orders for transportation equipment, durable goods orders increased by 0.6 percent in September after climbing by 0.5 percent in August. Ex-transportation orders were expected to inch up by 0.2 percent.

A separate report released by the Labor Department on Wednesday showed an unexpected dip by first-time claims for U.S. unemployment benefits in the week ended November 22nd.

The Labor Department said initial jobless claims slipped to 216,000, a decrease of 6,000 from the previous week's revised level of 222,000.

Economists had expected jobless claims to inch up to 225,000 from the 220,000 originally reported for the previous week.

The report said the less volatile four-week moving average also edged down to 223,750, a decrease of 1,000 from the previous week's revised average of 224,750.

At 9:45 am ET, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of November.

The Chicago business barometer is expected to inch up to 44.3 in November from 43.8 in October, but a reading below 50 would still indicate contraction.

The Energy Information Administration is due to release its report on crude oil inventories in the week ended November 14th at 10:30 am ET.

At 11:30 am ET, the Treasury Department is scheduled to announce the results of this month's auction of $44 billion worth of seven-year notes.

The Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, at 2 pm ET.