U.S. stock index futures hovered near the flat line early Thursday, indicating Wall Street may begin the session without a clear trend following two days of mostly upward momentum.

After the sharp swings that characterized early-week trading, investors appear to be pausing to reevaluate short-term market conditions.

Equities slid on Monday after last week’s strong rally, but managed to claw back losses on Tuesday and Wednesday despite uneven trading. Expectations of another interest rate cut by the Federal Reserve at next week’s policy meeting helped the major benchmarks more than recover Monday’s decline.

Futures saw little movement even after a Labor Department report showed first-time unemployment claims unexpectedly fell to their lowest level in three years during the week ending November 29. Initial claims dropped to 191,000 — down 27,000 from the prior week’s revised figure of 218,000 — defying economists’ predictions for an increase to 220,000. The reading marked the lowest point since late September 2022.

On Wednesday, stocks drifted early in the session but later pushed higher. The Nasdaq and S&P 500 posted modest gains, while the Dow outperformed with a stronger rise.

By the close, all major indexes had finished in positive territory: the Dow climbed 408.44 points, or 0.9 percent, to 47,882.90; the Nasdaq added 40.42 points, or 0.2 percent, to 23,454.09; and the S&P 500 advanced 20.35 points, or 0.3 percent, to 6,849.72.

The Dow’s rally was supported by a 4.7 percent jump in UnitedHealth (NYSE:UNH), alongside strong advances from Goldman Sachs (NYSE:GS), McDonald’s (NYSE:MCD), and Amgen (NASDAQ:AMGN). Meanwhile, Microsoft (NASDAQ:MSFT) fell 2.5 percent after The Information reported the company had scaled back growth expectations for its AI-related software sales.

Market sentiment improved earlier in the day as ADP data revealed an unexpected contraction in private-sector payrolls for November. Employment in the private sector declined by 32,000 positions, reversing an upwardly revised increase of 47,000 in October. Economists had expected a modest gain of around 10,000 jobs.

The report reinforced hopes for another rate cut from the Federal Reserve next week, with CME Group’s FedWatch Tool showing an 89.0 percent probability of a quarter-point reduction.

“This morning’s ADP data confirm what a lot of the doves are saying — it’s more important to focus on a weakening labor market than to worry about inflation in the 2–3% range (but still above the 2.0% target),” said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management. He continued, “Although there may be some dissents at next week’s Fed meeting, it is a sure thing that a 25-bps rate cut will be announced, but going forward is where things get more confusing.”

A separate report from the Institute for Supply Management also delivered an upside surprise, showing an increase in service-sector activity. The services PMI rose to 52.6 in November from 52.4 in October, defying expectations for a slight dip to 52.1 and marking its highest level since February.

Energy-service stocks surged as crude oil prices rebounded, lifting the Philadelphia Oil Service Index by 3.7% to a ten-month high. Airline shares also outperformed, with the NYSE Arca Airline Index jumping 2.7% to its strongest close in almost three months. Gains were also notable in steel, financial, and housing stocks, while computer-hardware names lagged.

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