HG MARKETS:

U.S. stock futures (Dow, S&P 500, and Nasdaq 100) saw slight gains on Thursday, continuing the momentum from the previous day’s rally. The primary reason for the bullish sentiment is the increasing expectation that the Federal Reserve (Fed) will cut interest rates at its policy meeting next week.

Weak ADP Report: This expectation was reinforced earlier in the week by the weaker-than-anticipated ADP private-sector payrolls report, which showed a surprising loss of 32,000 jobs in November.

Dovish Outlook: This lackluster jobs data strengthens the view that the U.S. labor market is slowing, providing the Fed with enough justification to ease borrowing costs. Markets are now pricing in about a 90% chance of a 25-basis-point rate cut.

Upcoming Data: Investors are now watching the Labor Department’s weekly report on new unemployment benefit claims, which is expected to show a small, marginal increase.

Fed Leadership Speculation: The “dovish” (rate-cutting) sentiment is further boosted by reports that suggest Kevin Hassett, who is generally seen as favoring lower interest rates than current Chair Jerome Powell, is a strong candidate for the next Fed leadership in 2026.

Corporate Sector Highlights:

Gains: Salesforce and Five Below shares rose in premarket trading. Salesforce upgraded its financial outlook for 2026, citing strong demand for its AI-powered agent platform. Five Below beat analyst expectations with strong third-quarter earnings.

Losses: Snowflake stock dropped after the cloud data firm issued a slightly disappointing projection for its near-term product revenue growth.

Regulatory Focus: Meta Platforms (WhatsApp) is facing a new antitrust probe from the European Commission regarding its rollout of new AI features, highlighting the increasing regulatory scrutiny on how Big Tech utilizes generative AI.