Traders took stock of a healthy rebound from November’s swoon that was sparked by AI bubble threats

U.S. stock markets fluctuated on Friday at the end of a strong week for equities.

Traders took stock of a healthy rebound from November’s swoon that was sparked by AI bubble threats.

But while there is much debate on whether valuations in the tech sector are overstretched, focus this week has been on the prospect of more rate cuts.

A number of U.S. central bank officials have lined up to back a third straight cut, mostly saying that concerns over a weakening labour market beat still elevated inflation.

Attention now turns to a range of data releases over the next week or so that could play a role in the bank’s final decision, with private hiring, services activity and personal consumption expenditure – the central bank’s preferred gauge of inflation.

With the government shutdown postponing or cancelling the release of some key data, closely watched non-farm payrolls numbers are now due in mid-December, after the central bank’s policy decision.

This delay places much greater scrutiny on the latest November ADP private payrolls report, wrote Market Insights’ Michael Hewson. He said there would likely be a Thanksgiving-linked spike in hiring that is not entirely representative of recent slower trends in the US labour market.

While a big jump in payrolls in November could be construed as a positive signal for the US labour market, it might not be enough to stop the Fed from cutting rates again with another close decision expected on Dec 10, he added.

Markets see around an 85% probability of a cut next month and three more in 2026.

In Asia, Hong Kong, Shanghai, Seoul and Jakarta dropped, while Tokyo was marginally down, and Sydney, Singapore, Taipei and Wellington all edged into the green.