ADP private payrolls indicated that companies added 42,000 jobs in October, a first after three months of decline, and better than the estimate of 22,000. However, smaller businesses continuing to shed jobs remains an area of concern.
The other positive macro was the Services PMI, which at 52.5, grew at the fastest pace in eight months. The services form a greater part of the US economy. Services PMI in September was stagnant, at 50. A reading above 50 indicates expansion.However, what this positive macro data did, is bring down the probability of a 25 basis points rate cut from the US Federal Reserve further down. According to the CME FedWatch, that probability now stands at 61% from 68% on Tuesday.
US Supreme Court also heard arguments regarding the legality of the tariffs imposed by the Trump administration. Solicitor General D. John Sauer was quizzed by judges but a decision was not announced. Treasury Secretary Scott Bessent, who attended the arguments, has previously warned that the US may have to refund over $750 billion to countries if the Supreme Court ruling is not in their favour.
The US Dollar index is back at the 100 mark, while Gold prices, despite a slight rebound, remain below the mark of $4,000 an ounce in the futures market. Companies such as Airbnb, Astrazeneca will be reporting their results today.
