U.S. November employment data came in much weaker than expected. The ADP report showed a decrease of 32,000 jobs for the month, the worst performance since March 2023. Keep in mind, the market had previously expected an increase of 10,000 jobs.

As soon as this data was released, traders immediately sensed a stronger possibility of a Fed rate cut next week. In response, all three major U.S. stock indices closed higher: the Dow Jones Industrial Average rose 0.86%, the S&P 500 gained 0.3%, and the Nasdaq Composite Index climbed 0.17%. Weak employment data ended up being a "positive" for the stock market, since rising expectations of monetary easing have always been a treat for risk assets.

However, the question remains: how long can this rally, driven by "bad news," last? For now, the market is waiting for the Fed’s statement at next week’s policy meeting.