Dow Futures show a modest increase, as the initial rise in risk-off sentiment at the start of the week seems to diminish. Bitcoin has rebounded above the $90,000 threshold, coinciding with a stabilization in the selloff of government bonds. Marvell shares experienced a notable increase in after-hours trading following the announcement of a multi-billion dollar acquisition of semiconductor startup Celestial AI, accompanied by positive forward guidance. Market participants will closely monitor a gauge of private sector employment, while oil prices experience an uptick in the context of negotiations aimed at facilitating a peace agreement between Russia and Ukraine.

Dow futures indicated an upward trajectory on Wednesday, as the recent decline in cryptocurrencies and bond markets appeared to be stabilizing. As of 02:27, the Dow futures contract experienced an uptick of 105 points, representing a 0.2% increase. Similarly, S&P 500 futures rose by 15 points, also reflecting a 0.2% gain, while Nasdaq 100 futures saw an increase of 63 points, maintaining the same percentage rise of 0.2%. The primary indices experienced gains in the previous session, dismissing initial risk-averse sentiment at the beginning of the trading week. Investors have shifted their attention towards the anticipated Federal Reserve interest rate cut scheduled for later this month. The likelihood that the U.S. central bank will reduce borrowing costs by a quarter of a percentage point at its December 9-10 meeting stands at approximately 87%, according to the reports. This figure indicates a strong consensus among market participants that policymakers will be inclined to offer support to a faltering labor market, even in the face of persistent inflationary pressures. On Tuesday, President Donald Trump announced that he intends to reveal his selection for the next Fed Chair in early 2026, having reduced the candidate pool to a single individual. That individual is widely anticipated to be White House economic adviser Kevin Hassett, who, as a close associate of Trump, is expected to promote a more accommodative monetary policy environment.

Bitcoin was hovering above $90,000, recovering from a significant decline in the world’s largest digital asset at the beginning of the week. At 02:58, Bitcoin experienced a notable increase of 6.9%, reaching $93,016.5, and is currently positioned near a two-week high, yet remains significantly below the all-time high achieved approximately six weeks prior. The prevailing risk-off sentiment in earlier sessions was driven by expectations of a possible rate hike by the Bank of Japan, leading to a selloff in global bonds that subsequently affected cryptocurrencies and the wider equity markets. The decline in Bitcoin has particularly impacted firms that have amassed significant holdings of the cryptocurrency, with Michael Saylor’s strategy being a prominent example. In light of the economic downturn, Strategy, which claims to hold 650,000 Bitcoins, representing approximately 3.1% of the total 21 million in circulation, has revised its annual profit forecast downward. The group’s shares experienced a decline on Monday, though they recovered some of those losses the following day. In after-hours trading, the stock exhibited a slight increase.

Marvell Technology has confirmed a multi-billion deal to acquire semiconductor startup Celestial AI, as the U.S. chipmaker seeks to enhance its compute capacity amid a persistent surge in demand fueled by the artificial intelligence boom. Crucially, the 3.25 billion transaction grants Marvell access to Celestial’s work on photonics, a process that harnesses light instead of electrical signals to establish connections between AI and memory chips. Marvell is in competition with Broadcom and Nvidia in the development of AI-optimized chips. CEO Matt Murphy has indicated that cloud-computing companies are expected to adopt photonics technology by 2027. Significant revenue contributions from the Celestial acquisition are anticipated to emerge in the latter half of Marvell’s fiscal 2028. Murphy indicated that the California-based enterprise anticipates approximately $10 billion in total revenue for the upcoming fiscal year, significantly driven by a 25% increase in data center revenue. Murphy informed investors during a post-earnings call that revenue at its custom chip unit could potentially rise by 20%. Marvell’s shares, having experienced a significant decline this year attributed to competitive pressures and escalating anxieties regarding a potential AI bubble, surged by over 8% in after-hours trading.

On the economic calendar, market participants will be monitoring a gauge of private payrolls expansion for the month of November. Analysts anticipate that the figures from payrolls processor ADP will indicate that the private sector in the U.S. experienced an increase of 5,000 jobs last month, a decline from the 42,000 recorded in October. The condition of the labor market remains a primary concern for investors, given its potential to significantly influence the future path of interest rates. In addition to the anticipated December rate cut, the trajectory for borrowing costs remains uncertain, partly due to a lack of new official economic indicators following the recent conclusion of a federal government shutdown. The October gauge of nonfarm payrolls, considered more comprehensive than the ADP figures, was canceled. Consequently, the employment figures for that month will be aggregated with those in November’s report, implying that the unemployment rate for October will remain undisclosed. In light of the insufficient availability of fresh data, both Wall Street and policymakers have resorted to alternative sources, including those provided by ADP.

Oil prices experienced a modest increase as the prospect of a swift resolution to the conflict in Ukraine appeared improbable, thereby maintaining a continuous risk to supply dynamics. Brent futures increased by 0.6% to $62.80 per barrel, while U.S. West Texas Intermediate crude futures experienced an increase of 0.7%, reaching a price of $59.06 per barrel. Following an extensive meeting on Tuesday, no consensus was reached between Russia and the United States regarding a potential peace agreement for Ukraine. The discussions involved Russian President Vladimir Putin and U.S. representatives Steve Witkoff and Jared Kushner. Oil markets are closely monitoring the developments in the negotiations to determine whether an agreement might result in the lifting of sanctions on Russian firms, potentially alleviating the constraints on oil supply. Increasing U.S. inventories have further fueled concerns regarding a crude surplus, following the American Petroleum Institute’s report on Tuesday indicating that crude stocks increased by 2.48 million barrels in the week ending November 28. The U.S. Energy Information Administration is set to publish official government stockpile data later on Wednesday.