Wall Street Futures Trade Sideways With ADP and JOLTS in Focus

U.S. equity futures are trading in a consolidation phase on Wednesday, with investors taking a cautious stance ahead of a series of key U.S. labor market and macroeconomic releases.

Previous Session

In the prior trading session, major U.S. indices closed higher. The S&P 500 finished above the 6,940 level, marginally surpassing its previous all-time high. The Nasdaq Composite tested a local descending trendline in place since October while continuing to trade within its medium-term ascending channel.

Market Setup Today

During early trading, S&P 500 futures are holding near the 6,940 level, remaining firmly in record territory. The 6,900 area continues to serve as a key technical support.

Nasdaq futures are consolidating just below a local descending trendline near 25,750. The 25,000 level remains an important support zone.

Key Market Drivers

Markets are focused on several major data releases scheduled for today:

• ADP employment report for December, tracking changes in nonfarm private payrolls.
• ISM Services PMI for December.
• JOLTS job openings data for November.
• Weekly EIA crude oil inventories.

Earlier, the S&P Global Services PMI and the Composite PMI for December came in slightly below expectations, though the data did little to disrupt the broader positive momentum in U.S. equities.

U.S. stock indices continue to trend higher overall, with both the Dow Jones and the S&P 500 recently setting fresh record highs.

Sector Performance

Cyclical sectors posted gains during the previous session, led by retail (XRT), materials (XLB), and aerospace & defense (ITA). The energy sector (XLE) underperformed.

Growth sectors showed mostly positive dynamics. Semiconductors (SOXX) and biotechnology (IBB) led advances, while communication services (XLC) and cannabis-related stocks (MJ) closed lower.

Defensive sectors posted moderate gains, with healthcare (XLV) leading and continuing to trade within an ascending channel.

Cross-Asset Signals

In broader markets, oil prices pulled back from the upper boundary of a local ascending channel, slipping below the $57 level.

U.S. Treasury yields remain range-bound near 4.17%, maintaining a neutral backdrop for risk assets.

The VIX volatility index continues to consolidate near the 15 level, signaling subdued volatility expectations.

Gold remains in an upward trend, holding just below the $4,500 level amid ongoing macro and geopolitical uncertainty.

Market Outlook

Futures pricing suggests a relatively calm market open. The near-term risk balance remains neutral, with moderate volatility expected as investors digest incoming labor market data.

Technical analysis by: Lucas Grant, Senior Technical Analyst at Finmire.