S&P 500 Edges Higher as Rate Cut Expectations Firm

The S&P 500 index closed Thursday's session with modest gains, adding 0.11% to finish at 6,857.12 points. This slight upward move was supported by the latest employment data, which reinforced market convictions that the U.S. Federal Reserve will implement an interest rate reduction later this month.

Trading volume was substantial, with approximately 15.1 billion shares changing hands across U.S. exchanges. Market breadth was decidedly positive, with advancing issues outnumbering decliners by a ratio of about three to one. The Cboe Volatility Index (VIX), a key gauge of market fear, dipped slightly to 15.96 by the close.

Individual stock performances were mixed but featured several standout gainers. UiPath (PATH) surged 24% following a quarterly report that exceeded expectations and featured an upgraded outlook. Dollar General (DG) jumped 14% after the retailer beat profit estimates and raised its full-year forecast. Significant advances were also recorded by Marvell Technology (MRVL) and GE Vernova (GEV).

Not all heavyweights participated in the rally. Snowflake (SNOW) declined 11.4% despite posting better-than-expected earnings and revenue. Analysts cited concerns over a deceleration in the company's product revenue growth. Intel (INTC) fell nearly 8% on reports the chipmaker intends to retain its networking and communications division. Netflix (NFLX) and Kroger (KR) also ended the day notably lower.

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From a sector perspective, industrials (+0.51%) and technology (+0.43%) led the advance. In contrast, consumer staples and healthcare were the laggards, each shedding 0.73%.

Technical Perspective and Forward Look

The technical backdrop for the index remains constructive. It continues to trade comfortably above its key moving averages (50-, 100-, and 200-day). A Relative Strength Index (RSI) reading of 65 points to sustained bullish momentum. Immediate resistance is seen near the 6,870 level, close to the record peak.

All eyes are now firmly fixed on the upcoming Federal Open Market Committee (FOMC) meeting scheduled for December 10. Market participants are pricing in an 87% probability of a 25-basis-point rate cut. The yield on the benchmark 10-year U.S. Treasury note edged higher to 4.11%, presenting a mild headwind for equities. The near-term trajectory will hinge on whether the index can muster enough momentum to decisively break through the all-time high around 6,900 points.