Stocks rose after the report that the economy is fighting but not as strong to avoid another rate cut by the Federal Reserve. The Dow Jones rose almost 200 points.
The report by ADP, which showed that 189,000 jobs were added during November raised hopes that the report by the Labor Department will be strong as well.
The economy is not that strong though, which might persuade the Federal Reserve that the lower rates are necessary. The argument is whether the Feds will cut the rates by a quarter or as much as half a point this time.
The rate cut has already been included in this rise, so if they will cut it by a quarter point, it might be a little disappointment to investors. Although, as long as the Fed will continue to mention that the rate cut will be made, the market will keep rising.