Small Caps Rally, Natural Gas Prices Jump To 3-Year Highs: What's Moving Markets Wednesday?

Small-cap stocks powered higher Wednesday as expectations for a rate cut next week strengthened after weaker-than-expected private employment data.

The Russell 2000 climbed more than 1% by midday in New York, lifted by rising odds of a 25-basis-point cut at the Fed's Dec. 10 meeting. The CME FedWatch tool shows a 90% chance of a move, with odds of another cut in January near 30%.

The ADP report showed U.S. private employers shed 32,000 jobs in November, reversing the 42,000 added in October and missing forecasts for a 5,000 gain. The data reinforced signs the labor market is cooling.

Treasury yields fell on the growing rate-cut expectations.

Large Caps Lag Small Caps

The S&P 500 rose 0.2% and the Nasdaq 100 was flat.

Microchip Technology Inc. (NASDAQ:MCHP) jumped nearly 10% — the best performance in the S&P 500 — after the company raised its fiscal third-quarter earnings outlook.

Netflix Inc. (NASDAQ:NFLX) dropped 6% to an eight-month low after reports that U.S. officials are scrutinizing its potential takeover of Warner Bros. Discovery, compounded by a sizable stock sale from a company director.

Energy stocks outperformed as oil and natural gas prices advanced. Crude rose 0.7% to $59 a barrel, while natural gas gained 3.6% to $5 per million British thermal units, the highest since December 2022. Henry Hub prices remain elevated as rising LNG exports to Europe tighten domestic supply. Antero Resources Corp. (NYSE:AR) shares gained more than 4%.

In metals, gold held at $4,200 and silver was steady at $58.

In crypto, Bitcoin (CRYPTO: BTC) rose 1.3% to $92,500, aiming for a second straight gain after Monday's sharp selloff.

Wednesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) inched 0.2% higher to $628.05.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.6% to $478.19.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) flattened at $621.96.
• The iShares Russell 2000 ETF (NYSE:IWM) rallied 1.3% to $248.43.
• The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 1.7%; the Utilities Select Sector SPDR Fund (NYSE:XLU) lagged, down 0.2%.

Russell 1000’s Top 5 Gainers And Fallers On Wednesday

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