The Dow advanced as shares of UnitedHealth surged 4.7%, with Goldman Sachs, McDonald's, and Amgen also recording strong gains. In contrast, Microsoft shares dropped 2.5% after reports suggested the company lowered its AI software growth targets. Market strength followed an ADP report showing private sector employment fell by 32,000 jobs in November, defying expectations for a small gain, fueling optimism that the Federal Reserve will cut interest rates next week.

CME Group's FedWatch Tool now shows an 89% chance of another quarter-point rate cut, with analysts like Chris Zaccarelli noting the Fed's focus on a weakening labor market outweighs inflation concerns. Meanwhile, the ISM services PMI unexpectedly rose to 52.6 in November, signaling continued expansion and marking the highest reading since February.

Oil service stocks moved sharply higher amid a rebound by the price of crude oil, driving the Philadelphia Oil Service Index up by 3.7% to a ten-month closing high. Airline stocks displayed substantial strength, with the NYSE Arca Airline Index surging by 2.7% to its best closing level in almost three months. Steel, financial and housing stocks saw considerable strength while computer hardware stocks showed a notable move to the downside.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index jumped by 1.1%, while China's Shanghai Composite Index slid by 0.5% and Hong Kong's Hang Seng Index slumped by 1.3%. The major European markets also ended the day mixed. While the French CAC 40 Index rose by 0.2%, the German DAX Index and the U.K.'s FTSE 100 Index both edged down by 0.1%.

In the bond market, treasuries moved to the upside in reaction to the private sector jobs data. As a result, the yield on the benchmark ten-year note which moves opposite of its price, fell 2.9 bps to 4.05%.

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