Stock futures are doing that thing again where they inch higher without much drama, extending Wednesday's gains into Thursday morning. Futures across major benchmark indices were modestly higher, with the market seemingly content to wait for more signals about what the Federal Reserve will do later this month.

But beneath the calm surface, there's plenty happening. Political chatter about a December rate cut intensified, and Wall Street found itself fixating on potential leadership changes at the Federal Reserve. President Donald Trump is reportedly considering appointing U.S. Treasury Secretary Scott Bessent as his chief economic adviser if incumbent Kevin Hassett gets tapped as the next Fed Chairman. That's the kind of personnel shuffle that keeps Washington and Wall Street buzzing simultaneously.

The real story Wednesday came from the ADP report, which showed U.S. private employers actually shed 32,000 jobs in November. That's not just below the forecast for a 5,000 gain; it's a complete reversal from October's 42,000 additions. The data reinforced what many have suspected: the labor market is cooling, and cooling fast.

Treasury yields reflected this sentiment. The 10-year bond was yielding 4.09% while the two-year sat at 3.51%. Meanwhile, the CME Group's FedWatch tool shows markets pricing in an 87% likelihood that the Federal Reserve cuts interest rates at its December meeting. That's not quite a sure thing, but it's pretty darn close.

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 indices respectively, were both higher in premarket trading Thursday. The SPY climbed 0.095% to $684.54, while the QQQ advanced 0.12% to $624.26.

Companies Making Moves

UiPath Delivers the Goods

UiPath Inc. (PATH) jumped 9.02% in premarket trading Thursday after delivering upbeat third-quarter financial results and issuing fourth-quarter sales guidance with its midpoint comfortably above analyst estimates. When a software company beats expectations and raises guidance in the same breath, investors tend to notice.

Salesforce Raises the Bar

Salesforce Inc. (CRM) rose 2.02% after reporting better-than-expected third-quarter earnings and raising its fiscal 2026 guidance. The cloud software giant continues to demonstrate resilience even as questions swirl about tech spending and economic uncertainty.

Snowflake's Margin Troubles

Snowflake Inc. (SNOW) tumbled 8.87% despite reporting better-than-expected third-quarter results. The culprit? Operating margin guidance that appears to be weighing heavily on shares. The company said it expects an adjusted operating margin of 7% in the fourth quarter, down from 11% in the third quarter. When your margins are heading in the wrong direction, investors get nervous regardless of how good your top-line numbers look.

Lululemon's Earnings Await

Lululemon Athletica Inc. (LULU) was essentially flat at 0.0055% higher as analysts expected the athletic apparel retailer to post quarterly earnings of $2.21 per share on revenue of $2.48 billion after the closing bell. The results would provide insight into whether premium athleisure continues to resonate with consumers in a more uncertain economic environment.

Robotics Gets a Political Boost

Nauticus Robotics Inc. (KITT) soared 31.41% after reports that Commerce Secretary Howard Lutnick has been meeting with robotics industry CEOs and supports efforts to accelerate growth in the sector. Sometimes all it takes is a little governmental attention to send a small-cap stock on a wild ride.

What Happened Wednesday

Financial, energy, and industrial stocks recorded the biggest gains Wednesday, though utilities and information technology issues bucked the trend to close lower. It was one of those days where sector rotation was obvious, with investors moving money from defensive plays and tech into more cyclical names.

Broadly speaking, U.S. stocks settled higher, with the Dow Jones index rising more than 400 points as that weak private employment data cemented expectations for a rate cut next week. When bad news for the economy becomes good news for stocks because it means easier monetary policy, you know we're living in interesting times.

What the Experts Are Saying

Professor Jeremy Siegel has identified what he considers a critical turning point for the U.S. economy, and it's all about the 10-year Treasury yield falling. Siegel argues this market movement is a leading indicator, "telling us far more about the next phase of Fed policy than most of the stale backward-looking data."

His conclusion? The Federal Reserve has ample room to maneuver, and he's predicting that "a 25-basis-point cut is very much in play" for the upcoming meeting. That aligns nicely with what the market is pricing in.

Siegel describes the current labor market as a "no-fire, no-hire" environment, neither overheating nor collapsing, which supports continued consumer spending despite gloomy sentiment surveys. It's an interesting characterization: employers aren't laying people off in droves, but they're also not exactly eager to bring on new workers.

When it comes to technology, Siegel highlights the intensifying race between major AI platforms like Gemini and OpenAI. While he cautions investors to be realistic about the fierce competition and depreciation costs of AI hardware, his long-term outlook remains positive. He concludes that "over the long run, AI will significantly boost productivity and earnings, and that supports equities." It's a measured take in a sector where hype often drowns out nuance.

Economic Calendar for Thursday

Investors have a few things to watch Thursday. Initial jobless claims data for the week ending November 29 will be released at 8:30 a.m. ET. Given the recent focus on labor market softening, this number will get more attention than usual.

Later, Fed Vice Chair for Supervision Michelle Bowman will speak at 12:00 p.m. ET. Any hints about her stance on the December meeting will be parsed carefully by market participants looking for clues about the central bank's next move.

Commodities, Crypto, and Global Markets

Crude oil futures were trading higher in the early New York session, up 0.54% to hover around $59.27 per barrel. Meanwhile, gold spot prices fell 0.21% to approximately $4,194.40 per ounce. Its last record high stood at $4,381.60 per ounce. The U.S. Dollar Index spot was 0.02% lower at the 98.8300 level.

In the cryptocurrency world, Bitcoin (BTC) was trading 0.54% higher at $93,446.51 per coin, continuing to hover in that range below the psychologically important $100,000 level.

Asian markets closed higher Thursday, with one notable exception: South Korea's Kospi index. India's NIFTY 50, Hong Kong's Hang Seng, China's CSI 300, Japan's Nikkei 225, and Australia's ASX 200 indices all rose. European markets were mostly higher in early trade, suggesting global sentiment remains cautiously optimistic despite ongoing economic uncertainties.

As we head deeper into December, the big question remains whether the Fed will follow through on what markets are pricing in. With labor data cooling and Treasury yields signaling room for action, a rate cut seems increasingly likely. But in markets, nothing is certain until it actually happens.