US stocks open higher as Fed rate cuts intensify in December

Stocks on Wall Street rose early Wednesday, continuing an upward move in a holiday-shortened week, as markets hope for another Federal Reserve rate cut next month.The Fed, which has cut rates at its past two meetings, will release its “beige book” later Wednesday detailing economic conditions in the United States.

The last two interest rate cuts are the result of increased concerns about the labor market.About five minutes into trading, the Dow Jones Industrial Average was 0.5 percent higher at 47,322.63.

The broader S&P 500 also rose 0.5 percent to 6,800.31, while the tech-rich Nasdaq Composite index rose 0.7 percent to 23,177.12.

“The market is recovering from deeply oversold levels,” said Adam Sarhan of 50 Park Investments. Recent data “leave the door open for the Fed to cut, and for now that’s bullish” for stocks, Sarhan said. Among individual companies, computer and printer manufacturer HP Inc. rose. by 0.5 percent after announcing it would eliminate about 10 percent of its workforce globally as it focuses on artificial intelligence to boost efficiency.

Deere & Company fell 5.1 percent after a decline in fourth-quarter profit and a decline in 2026 revenues compared to 2025.

CEO John May said the company believes 2026 will “mark the trough of the great agricultural cycle,” referring to cyclical trends affecting demand for Deere’s agricultural products.