US stock indexes rebounded today on signs of strength in the US economy. The monthly US ADP employment report showed more jobs added than expected, and the US service sector saw its most significant expansion in 8 months. AI-infrastructure stocks corrected lower, with Super Micro Computer down over -8%.

The US Treasury announced $125 billion in T-notes and T-bonds sales for next week, as expected. The Treasury does not plan to increase sales until well into next year and will rely on short-term T-bills to fund the budget deficit. US MBA mortgage applications fell -1.9% in the latest week.

The US Oct ADP employment change exceeded expectations, rising by +42,000 jobs. The US Oct ISM services index also beat forecasts, rising +2.4 to 52.4, indicating the fastest expansion in 8 months. However, price pressures in the service sector increased, with the prices paid sub-index reaching a 3-year high of 70.0.

The markets are pricing in a 62% chance of another -25 bp rate cut at the next FOMC meeting on December 9-10. The Supreme Court heard oral arguments regarding the legality of President Trump’s reciprocal tariffs, with a ruling expected soon. Q3 earnings season continues strong, with many companies beating forecasts.

The ongoing US government shutdown, now the longest in history, is impacting market sentiment and the economy. Overseas stock markets are mixed, with the Euro Stoxx 50 up, China’s Shanghai Composite recovering, and Japan’s Nikkei Stock 225 falling. Interest rates are fluctuating, with T-notes down and yields rising.

Read more at Yahoo Finance: Stocks Rebound on Economic Optimism