{"id":166939,"date":"2025-12-04T02:22:12","date_gmt":"2025-12-04T02:22:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/166939\/"},"modified":"2025-12-04T02:22:12","modified_gmt":"2025-12-04T02:22:12","slug":"dow-sp-500-nasdaq-rise-as-weak-adp-jobs-data-reinforces-growing-fed-rate-cut-bets","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/166939\/","title":{"rendered":"Dow, S&P 500, Nasdaq rise as weak ADP jobs data reinforces growing Fed rate cut bets"},"content":{"rendered":"\n

US stocks edged up on Wednesday as a surprise decline in private-sector employment revealed cracks in the job market<\/a>, but also reinforced bets on a Fed rate cut next week.<\/p>\n

The Dow Jones Industrial Average (^DJI<\/a>) rose 0.9%, or over 400 points, while the S&P 500 (^GSPC<\/a>) added 0.3%. The tech-heavy Nasdaq Composite (^IXIC<\/a>) climbed 0.2% after the major gauges finished Tuesday<\/a> with gains across the board.<\/p>\n

The ADP report looked to add fuel to the rate-cut fire, as nearly 90% of bets<\/a> sit on a quarter-point reduction from the Federal Reserve next week. Private employers shed 32,000 jobs in November, compared with expectations for a modest gain. ADP said the decline was driven primarily by a sharp pullback from small businesses.<\/p>\n

Meanwhile, from the Institute for Supply Management <\/a>showed US services activity expanded slightly in November to a reading of 52.6%, while the index for prices paid eased to a seven-month low in a potentially positive sign for inflation. The next official update on consumer prices \u2014 the PCE print due Friday \u2014 is playing catch-up from September.<\/p>\n

Elsewhere, bitcoin (BTC-USD<\/a>) extended its bid to bounce back from a deep, weeks-long slump<\/a> that pulled the token below $83,000 in recent days. The leading cryptocurrency rose to a two-week high<\/a> above $93,000 on Wednesday before retracing some of its gains.<\/p>\n

Microsoft (MSFT<\/a>) helped spur an early decline in tech stocks, and its shares ended down 2.5% after The Information reported<\/a> that the software giant is lowering its AI sales quotas. That appeared to reignite investor skepticism around AI demand. Leading semiconductor stocks retreated, with Nvidia (NVDA<\/a>) and Broadcom (AVGO<\/a>) dropping, among others.<\/p>\n

On the earnings front<\/a>, Marvell Technology (MRVL<\/a>) stock climbed<\/a> nearly 8% after the US chipmaker’s upbeat sales outlook and deal to buy Celestial AI. Shares of American Eagle Outfitters (AEO<\/a>) surged 15% after the retailer’s strong start<\/a> to the holiday shopping season.<\/p>\n

Salesforce (CRM<\/a>) results are on Wednesday’s docket after the bell.<\/p>\n

LIVE COVERAGE IS OVER 23 updates \"Ines Wed, December 3, 2025 at 9:00 PM UTC Stocks edge higher for second day in a row on Fed rate hopes, bitcoin rises <\/p>\n

Stocks edged higher for a second day in a row as the odds of a December rate cut grew amid worse-than-expected private payroll data.<\/p>\n

The Dow Jones Industrial Average (^DJI<\/a>) rallied 0.8%, while the S&P 500 (^GSPC<\/a>) rose 0.3%. The tech-heavy Nasdaq Composite (^IXIC<\/a>) edged up 0.1%.<\/p>\n

The Russell 2000 (^RUT<\/a>) rose over 1.8%, outperforming the gains as investor expectations of a Dec. 10 rate cut jumped after the ADP jobs update showed a surprise decline in private-sector employment in November.<\/p>\n

Microsoft (MSFT<\/a>) shares declined after a report from the Information indicated that the tech giant had cut its AI sales quotas, raising concerns about demand.<\/p>\n

Bitcoin (BTC-USD<\/a>) stood above $92,000 on Wednesday, a key level that traders have been watching, which could signal that a run toward $100,000 isn’t out of the question.<\/p>\n

\"Ines Wed, December 3, 2025 at 8:10 PM UTC Larry Fink softens crypto stance as BlackRock boasts biggest US bitcoin ETF: ‘My thought process has evolved’ <\/p>\n

Yahoo Finance’s David Hollerith reports:<\/p>\n

Read more here. <\/a><\/p>\n

Wed, December 3, 2025 at 7:35 PM UTC US dollar extends slide after ADP jobs report <\/p>\n

The US dollar extended its slide to a seventh day on Wednesday, putting it on track for its longest stretch of declines since July 2020.<\/p>\n

The dollar index (DX-Y.NYB<\/a>) \u2014 which measures the US dollar against a basket of currencies, including the euro, yen, pound, among others \u2014 fell 0.5% to 98.85 in afternoon trading, breaking below a resistance level at 99.<\/p>\n

Wall Street has grown bearish on the dollar in recent months, with analysts citing the dollar’s rich valuation<\/a>, risks to its safe-haven status<\/a>, and uncertainty around Fed policy.<\/p>\n

In their 2026 FX outlook, Deutsche Bank strategists led by Tim Baker forecast further weakness in the dollar heading into 2026.<\/p>\n

“Valuations, balance of payment dynamics and relative monetary policy cycles are supportive of further gradual dollar weakness,” the Deutsche Bank strategists wrote in a Nov. 25 note. “Our forecasts for 2026 are little changed from earlier this year. We project further dollar weakness but at a slower pace than 2025, leaving the trade-weighted dollar 10% weaker by end-26. If these forecasts materialize, they will confirm that this decade’s unusually long dollar bull cycle is over.”<\/p>\n

Wed, December 3, 2025 at 7:10 PM UTC Former Intel CEO says big AI firms are funding themselves \u2014 and that’s not real demand <\/p>\n

Former Intel (INTC<\/a>) CEO Pat Gelsinger warned that the biggest players in AI are now funding their own growth, meaning the AI boom fueling markets may be somewhat illusory.<\/p>\n

“The quality of that revenue that they’re committing in the future simply isn’t as good, right? Because essentially I’m buying my own future revenue,” Gelsinger, now executive chairman at xLight, said on Yahoo Finance’s Market Catalysts<\/a>. “Because rather than you putting your capital at risk, I’m putting my capital at risk.”<\/p>\n

Yahoo Finance’s Francisco Velasquez<\/a> reports:<\/p>\n

Read more here.<\/a><\/p>\n

Wed, December 3, 2025 at 6:14 PM UTC Treasury Secretary Bessent stops short of confirming Kevin Hassett as next Fed chair <\/p>\n

Yahoo Finance’s David Hollerith<\/a> reports:<\/p>\n

Read more here.<\/a><\/p>\n

Wed, December 3, 2025 at 5:30 PM UTC Bitcoin breaks above $92,000: ‘A Santa rally is certainly not off the cards’ <\/p>\n

Yahoo Finance’s Ines Ferr\u00e9 <\/a>reports:<\/p>\n

Read more here.<\/a><\/p>\n

Wed, December 3, 2025 at 4:53 PM UTC Small-cap stocks gain as ‘seasonal stirrings’ take effect <\/p>\n

US stocks broadly turned higher in midday trading, but small-cap stocks shone as investors increased bets on a Federal Reserve rate cut in December.<\/p>\n

The Russell 2000 (^RUT<\/a>) rose over 1%, outperforming the gains in the Dow Jones Industrial Average (^DJI<\/a>), S&P 500 (^GSPC<\/a>), and Nasdaq Composite (^IXIC<\/a>).<\/p>\n

Part of the rally in small caps may be chalked up to seasonality. “We’re seeing the seasonal stirrings of the small-cap outperformance,” Stock Trader’s Almanac editor, Jeff Hirsch, told Yahoo Finance on Wednesday. <\/a><\/p>\n

Hirsch pointed to the “January effect,” the tendency for small caps to outperform large caps between mid-December and March. The name comes from the month that typically sees the greatest small-cap outperformance, January.<\/p>\n

“Low interest rates definitely help,” Hirsch said. “I think we’ve been waiting for more than a year for small caps to wake up, and …. we’re seeing it just across the board.”<\/p>\n

Although some strategists expect stocks to break from some of their seasonal patterns<\/a> this year, Hirsch remained confident that traders will see the January effect and small caps rally into the end of the year.<\/p>\n

\"Laura Wed, December 3, 2025 at 4:02 PM UTC Nvidia says Blackwell is ‘transforming the economics of AI’ <\/p>\n

Nvidia (NVDA<\/a>) released a report<\/a> on Wednesday showing how its Blackwell AI systems can scale up artificial intelligence more efficiently, just as Big Tech’s data center buildout faces a massive power shortage<\/a>.<\/p>\n

Unlike previous models that use all their parameters to generate answers for AI tools \u2014 requiring enormous computing power \u2014 Nvidia noted that leading frontier AI models use what’s called a “Mixture of Experts” architecture that’s more efficient. Examples include OpenAI\u2019s gpt-oss-120B model, DeepSeek’s R1, and Mistral AI\u2019s Mistral Large 3.<\/p>\n

In a so-called MoE model, many specialized \u201cexperts\u201d are trained for different types of tasks. Instead of activating the entire model for every query, the model selects only the experts best suited to respond, reducing the computing power required for AI tasks while still improving performance.<\/p>\n

But today’s MoE models have some limitations \u2014 they require a lot of memory<\/a> and the use of multiple AI chips at once.<\/p>\n

Nvidia said its GB200 NVL72 AI server racks \u2014 which include 72 Blackwell GPUs, or graphics processing units (aka AI chips), and are equipped with its coveted networking technology<\/a> \u2014 resolve bottlenecks to scaling MoE systems in order to improve the energy efficiency and lower the cost of AI.<\/p>\n

Nvidia said its Blackwell system is “transforming the economics of AI at scale in power- and cost-constrained data centers” because it “unlocks” the potential of MoE models that are “moving the industry toward a future where massive capability, efficiency and scale coexist.”<\/p>\n

\"Jake Wed, December 3, 2025 at 3:45 PM UTC Natural gas crests 3-year high as price explosion continues <\/p>\n

Natural gas futures (NG=F<\/a>) continued a significant tear higher Wednesday, hitting a three-year high of $4.996 around 8 a.m. ET.<\/p>\n

Prices have surged by more than 20% in the past month. If the commodity crosses the $5 mark, it will be the first time it has done so since December 2022.<\/p>\n

Prices on natural gas have spent the past several months spiking as supply has shrunk and demand has grown substantially. Not only has a cold winter pushed prices up on expectations of incoming consumer demand, but the boom in data centers seeking immense loads of power has also begun to draw on natural gas.<\/p>\n

Getting connected to the US power grid can take years, and renewables are largely unable at their current levels to meet the high demands of data centers. Natural gas infrastructure has filled that gap<\/a>, acting as a backstop while Big Tech works out permanent solutions to its power shortfall.<\/p>\n

The US has also spent 2025 increasing its exports of liquified natural gas (LNG) as global demand has risen, reducing the amount of gas available for storage and tightening the supply side.<\/p>\n

\"Laura Wed, December 3, 2025 at 3:19 PM UTC Netflix shares fall as streaming giant argues its bid for WBD would benefit consumers <\/p>\n

Netflix (NFLX<\/a>) shares dropped more than 6% Wednesday morning as the streaming giant attempted to preempt regulatory concerns that its proposed acquisition of Warner Bros Discovery’s (WBD<\/a>) studios and streaming unit would raise prices for consumers.<\/p>\n

The company argued that the acquisition would reduce streaming costs by bundling Netflix and HBO Max, Reuters reported<\/a>.<\/p>\n

That argument appeared to do the opposite of its intention, with Netflix shares reversing gains from the previous four trading sessions on Wednesday morning.<\/p>\n

Adding pressure to the stock, Netflix co-founder Reed Hastings reported selling $40.7 million<\/a> worth of shares on Dec. 1. Hastings also sold roughly $126 million worth of shares in the streaming giant in September and October, according to the latest SEC filing<\/a>.<\/p>\n

\"Laura Wed, December 3, 2025 at 2:50 PM UTC Chip stocks sink as AI demand fears reignited by report of Microsoft AI sales quota cuts <\/p>\n

Big-name chip stocks sank in early trading after The Information reported that Microsoft (MSFT<\/a>) is cutting sales quotas for some AI products.<\/p>\n

AI chip giant Nvidia (NVDA<\/a>) fell nearly 1%, while rival chipmaker Broadcom (AVGO<\/a>) dropped 2.4% and leading contract chip manufacturer TSMC (TSM<\/a>) sank nearly 1.9%. Micron (MU<\/a>) \u2014 which supplies high-bandwidth memory to Nvidia for its AI systems \u2014 led the decline in chip stocks, falling 3.7%.<\/p>\n

The Information’s report appeared to reignite investor skepticism over whether AI demand is large enough to sustain AI hardware stocks’ high valuations.<\/p>\n

Wed, December 3, 2025 at 2:40 PM UTC Stocks waver at the open <\/p>\n

US stocks wobbled at the market open on Wednesday, partly recovering from steeper declines in premarket trading.<\/p>\n

The Dow Jones Industrial Average (^DJI<\/a>) and the S&P 500 (^GSPC<\/a>) both dipped below the flatline. The tech-heavy Nasdaq Composite (^IXIC<\/a>) fell around 0.3%.<\/p>\n

The declines for tech came after The Information reported that Microsoft (MSFT<\/a>) is lowering its quota for AI software sales. That appeared to fuel doubts over broader AI demand, with big-name chip stocks sinking in early trading. Also pressuring stocks, the ADP jobs update showed a surprise decline in private-sector employment in November.<\/p>\n

The market action on Wednesday comes after the major indexes finished Tuesday<\/a> with gains across the board.<\/p>\n

\"Myles Wed, December 3, 2025 at 2:17 PM UTC Microsoft stock sinks after company reportedly cuts some AI sales quotas <\/p>\n

Microsoft (MSFT<\/a>) stock fell nearly 2% in premarket trade on Wednesday after The Information reported<\/a> the company had cut sales quotas for some AI products.<\/p>\n

These full-year cuts come after some sales goals were also missed in the first half of the year.<\/p>\n

This report sent the entire market lower, with Nasdaq futures falling as much as 0.5% before the open.<\/p>\n

The market reaction on Wednesday shows this report being seen as another sign AI products might not yet be ready for the kind of mass customer adoption \u2014 whether that be consumers or enterprise customers \u2014 that hype around the AI trade depends on.<\/p>\n

On the other hand, this softening of what were almost certainly aggressive targets also has a people management aspect, too, as a company doesn’t want to punish a salesforce on the leading edge of an industrywide change if those same salespeople will be needed in the future to continue leading these efforts as AI products improve.<\/p>\n

But given the state of this market, where investors have an increasing number of doubts about the stability of the AI trade against the backdrop of a slowing white collar labor market<\/a>, this news does not appear to be getting the benefit of the doubt.<\/p>\n

Wed, December 3, 2025 at 1:38 PM UTC ADP report shows US private employers unexpectedly shed 32,000 jobs in November <\/p>\n

US private employers shed 32,000 jobs in November, ADP reported Wednesday, marking an unexpected decline in the labor market after October’s revised 47,000 jobs gained.<\/a><\/p>\n

The manufacturing, professional services, information, and construction sectors led the job losses. Hiring also deteriorated in small businesses, which lost 120,000 jobs during the month.<\/p>\n

\u201cHiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,\u201d ADP chief economist Nela Richardson said. \u201cAnd while November’s slowdown was broad-based, it was led by a pullback among small businesses.\u201d<\/p>\n

ADP’s labor market update was viewed as a crucial piece of labor market data, as the Bureau of Labor Statistics canceled its October jobs report due to the government shutdown.<\/p>\n

Stocks were relatively unchanged following the report. Prospects of Fed interest rate cuts likely offset concerns about weakness in the labor market. On Wednesday morning, traders assigned an 88% chance that the Fed would cut rates at its December meeting, compared to 83% the previous week.<\/p>\n

Read more here.<\/a><\/p>\n

\"Jenny Wed, December 3, 2025 at 1:04 PM UTC Good morning. Here’s what’s happening today. <\/p>\n

Economic data: MBA mortgage applications (week ended Nov. 28) ADP employment change (November); Import price index (September); Export price index (September) Industrial production (September); S&P Global US services PMI (November), final reading; S&P Global US composite PMI (November); ISM services index (November)<\/p>\n

Earnings: Salesforce (CRM<\/a>), Royal Bank of Canada (RY<\/a>), Snowflake (SNOW<\/a>), Dollar Tree (DLTR<\/a>), Five Below (FIVE<\/a>), Macy’s<\/a> (M<\/a>), Uranium Energy Corp. (UEC<\/a>), C3.ai (AI<\/a>)<\/p>\n

Here are some of the biggest stories you may have missed overnight and early this morning:<\/p>\n

Macy’s posts surprise Q3 profit as overhaul resonates<\/a><\/p>\n

Bets jump on rate cuts from Trump-led Fed<\/a><\/p>\n

Apple’s leadership shift marks a ‘major reset’ in AI strategy<\/a><\/p>\n

Anthropic plans an IPO as early as 2026, FT reports<\/a><\/p>\n

Salesforce stock historically cheap as AI risk takes a toll<\/a><\/p>\n

Bitcoin hits 2-week high in cautious crypto recovery<\/a><\/p>\n

Women are just guessing how much they’ll need to retire<\/a><\/p>\n

Fed data suggests central bank has stopped losing money<\/a><\/p>\n

\"Jenny Wed, December 3, 2025 at 12:53 PM UTC Macy’s falls as sales guidance trails last year’s numbers <\/p>\n

Macy’s (M<\/a>) stock fell over 7% before the bell on Wednesday as its elevated sales guidance fell below last year’s annual sales numbers. But the retailer posted a surprise third quarter profit and its strongest comparable sales in three years. It also raised its financial guidance for the year.<\/p>\n

The AP reports:<\/p>\n

Read more here. <\/a><\/p>\n

Wed, December 3, 2025 at 12:48 PM UTC Apple’s leadership shift marks a ‘major reset’ in AI strategy <\/p>\n

Yahoo Finance’s Hamza Shaban<\/a> writes in today’s Morning Brief newsletter:<\/p>\n

Read more here.<\/a><\/p>\n

Wed, December 3, 2025 at 12:02 PM UTC Marvell shares jump as chipmaker bolsters AI ambitions with Celestial deal <\/p>\n

Marvell Technology (MRVL<\/a>) shares climbed over 10% in premarket after its quarterly earnings beat and news the US chipmaker plans to buy Celestial \u200bAI.<\/p>\n

Reuters reports:<\/p>\n

Read more here<\/a>.<\/p>\n

\"Jenny Wed, December 3, 2025 at 11:39 AM UTC Premarket trending tickers: GitLab, Okta, and Acadia Healthcare <\/p>\n

GitLab (GTLB<\/a>) stock fell 8% before the bell on Wednesday after reporting a loss in its latest quarter despite posting double-digit sales.<\/p>\n

Okta (OKTA<\/a>) stock dropped 4% during premarket trading on Wednesday. The cybersecurity company forecast fourth-quarter revenue above<\/a> Wall Street estimates on Tuesday.<\/p>\n

Acadia Healthcare (ACHC<\/a>) fell 30% before the bell on Wednesday. The company lowered its full-year outlook, citing higher-than-expected costs from patient-related litigation.<\/p>\n

Wed, December 3, 2025 at 9:15 AM UTC Bitcoin hits 2-week high but crypto sentiment remains fragile <\/p>\n

Bitcoin (BTC-USD<\/a>) continued its tentative recovery on Wednesday, tapping its highest level in two weeks as cryptocurrencies more broadly look to bounce back from a weeks-long slump.<\/p>\n

The leading token rose to about $93,965, its highest intraday level since Nov. 17. It since has pared gains to trade below $93,000.<\/p>\n

Bloomberg reports:<\/p>\n

Read more here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"US stocks edged up on Wednesday as a surprise decline in private-sector employment revealed cracks in the job…\n","protected":false},"author":2,"featured_media":166940,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[99512,114,184,4318,85,46,1008],"class_list":["post-166939","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-adp-report","tag-business","tag-economy","tag-federal-reserve","tag-il","tag-israel","tag-nasdaq-composite"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/166939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=166939"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/166939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/166940"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=166939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=166939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=166939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}