NEW YORK, Dec. 3 (Xinhua) -- U.S. stocks closed higher on Wednesday after fresh employment figures from Automatic Data Processing, Inc. (ADP) strengthened expectations that the Federal Reserve will cut interest rates next week.
The Dow Jones Industrial Average rose 408.44 points, or 0.86 percent, to 47,882.9. The S&P 500 added 20.35 points, or 0.3 percent, to 6,849.72. The Nasdaq Composite Index increased by 40.42 points, or 0.17 percent, to 23,454.09.
Nine of the 11 primary S&P 500 sectors ended in green, with energy and financials leading the gainers by going up 1.83 percent and 1.27 percent, respectively. Meanwhile, technology and utilities led the laggards by dropping 0.42 percent and 0.32 percent, respectively.
Private payrolls in the United States fell by 32,000 in November, according to ADP, defying economists' expectations for an increase of 40,000 for the month.
Despite the weak reading, investors viewed the data as increasing the likelihood of a near-term policy shift. Many traders believe the decline in private-sector jobs will give the Fed added justification to lower interest rates at its final meeting of the year.
Market pricing reflects that sentiment, with the CME FedWatch tool showing an 89 percent probability of a rate cut next Wednesday, which is far above levels seen in mid-November.
Expectations for a lower-rate environment helped lift major financial stocks such as Wells Fargo and American Express.
Microsoft was a drag on the market, sliding 2.5 percent after a report from The Information claimed the company had reduced software sales quotas tied to artificial intelligence. Shares pared losses after Microsoft denied making such changes.
Other AI-linked names, including Nvidia, Broadcom, and Micron Technology, also came under pressure. Apple dipped 0.71 percent. ■