A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 2, 2025. REUTERS/Eduardo Munoz

By Johann M Cherian and Pranav Kashyap

Dec 3 (Reuters) - U.S. stock index futures edged higher on Wednesday as investors ramped up bets on a rate cut from the Federal Reserve this month and awaited a fresh wave of economic data.

Wall Street rebounded on Tuesday from a wobbly start to December as traders digested losses in the crypto and bond markets and weighed a barrage of delayed data and mixed signals on monetary policy from Fed officials.

A report that the Trump administration had abruptly canceled interviews with finalists for the Fed chair role firmed up the view that Kevin Hassett - seen as a U.S. interest rate cutter - will replace Jerome Powell next May.

Markets are weighing that prospect against a muddled economic backdrop, with manufacturing and holiday sales sending mixed signals even as a chorus of influential policymakers has turned more dovish in recent days. Traders now put the odds of a 25-basis-point cut at next week's Fed meeting at 87%, up from 63% a month ago, CME's FedWatch Tool shows.

Markets are looking to the Fed's industrial production report for September and an ADP reading, expected to show private employers added just 10,000 jobs in November, down from 42,000, for fresh clues on momentum.

With official employment reports for October and November landing only after next week's decision, investors are leaning more than usual on private-sector data.

An ISM survey on services due Wednesday, particularly its prices-paid component, will also be closely watched ahead of Friday's personal consumption expenditures release, the Fed's preferred inflation gauge.

The November ADP jobs report is unlikely to change the market-implied probability of a 25-basis-point Fed rate cut next week, said Chris Turner, global head of markets at ING. However, he said the market may respond to the ISM services report, particularly its employment component, which was still signaling weakness last month.

At 6:52 a.m. ET, Dow E-minis were up 81 points, or 0.17%, S&P 500 E-minis were up 13 points, or 0.19%, and Nasdaq 100 E-minis were up 36.5 points, or 0.14%.

In premarket trading, Marvell Technology <MRVL.O> jumped nearly 10% after the chipmaker said it will buy semiconductor startup Celestial AI in a deal worth $3.25 billion and gave a bullish forecast for its next fiscal year.

Microchip Technology <MCHP.O> rose 2.6% after the chipmaker raised its expectations for third-quarter net sales and earnings per share, driven by strong bookings.

American Eagle Outfitters <AEO.N> raised its annual comparable sales forecast, betting on marketing-driven demand for its apparel and accessories during the holiday season, sending its shares up 14.3%.

Earnings reports from Macy's and Dollar Tree due later in the day could also offer insights into the health of the American consumer.

Crypto stocks such as Strategy and Bit Digital gained 2.6% and 3.6%, respectively as bitcoin recovered 1.9% and touched a two-week high.

CrowdStrike <CRWD.O> fell 1% after reporting quarterly results and forecasts.

(Reporting by Johann M Cherian and Pranav Kashyap in Bengaluru; Editing by Tasim Zahid)