Investors eye U.S. jobs report as key to Federal Reserve's rate decisions

Investors are awaiting the U.S. employment report, which could influence the Federal Reserve's interest rate decisions. Strong job data may reduce expectations for rate cuts and raise inflation concerns, impacting stock market confidence. The S&P 500 is near record highs, having gained over 25% this year. However, recent strong economic indicators have increased uncertainty about the Fed's rate trajectory, with expectations for cuts tempered since September. Futures indicate a 70% chance of a 25 basis point rate cut at the Fed's December meeting. Economists expect November payrolls to rise by 183,000 jobs, and a stronger report could lead to a sell-off in stocks.