Stock futures showed minimal movement Thursday morning as investor sentiment brightened regarding a potential interest rate cut later this month. Futures linked to the Dow Jones Industrial Average increased by 45 points, or 0.1%, while S&P futures remained steady and Nasdaq 100 futures dipped slightly by less than 0.1%.
In after-hours trading, Salesforce experienced a notable surge, climbing over 5% after delivering a stronger-than-expected revenue forecast. Discount retailer Five Below also saw a rise of about 2%, buoyed by earnings that exceeded Wall Street’s predictions. Earlier in the week, ADP’s jobs report, which revealed a surprising drop in private payrolls for November, contributed to a bullish day for stocks, resulting in a gain of more than 400 points, or 0.9%, for the Dow. The S&P 500 and the tech-heavy Nasdaq Composite followed suit, closing up 0.3% and 0.2%, respectively.
Markets responded to the unexpected ADP data with growing speculation that the Federal Reserve may be more likely to implement an interest rate cut at its upcoming December 10 meeting. According to the CME FedWatch tool, the likelihood of a rate cut next Wednesday is now pegged at a robust 89%, a significant increase from estimates just weeks ago.
While optimism around the interest rate cut persisted, the artificial intelligence sector faced challenges, leading to a downturn in technology stocks. Microsoft, Nvidia, and Broadcom were among the largest decliners within the S&P 500, dragging the tech sector down. Microsoft shares fell by 2.5% following a report by The Information indicating the company would lower its AI-related software sales targets. Although Microsoft later disputed these claims, the stock did manage to recover some of its earlier losses.
Adam Turnquist, chief technical strategist at LPL Financial, noted in a client update that “rotation is often called the ‘lifeblood of a bull market,’ and this cycle has largely featured big-tech leadership followed by broader moves into other cyclical sectors.” Recently, however, the trend has shifted away from technology stocks towards defensive sectors, signaling a noteworthy sign of risk aversion since the market’s rebound in April. Turnquist cautioned that while this may merely be a pullback from elevated levels, the shift warrants careful observation.
Investors remain vigilant regarding potential developments around tariff policies enacted during the Trump administration, particularly how these might influence the domestic labor market. Treasury Secretary Scott Bessent remarked at The New York Times DealBook Summit that the administration could potentially revive its tariff agenda under sections of the 1962 Trade Act, despite any challenges the current tariff structure may face in ongoing Supreme Court litigation.
As the market gears up for the Fed’s next move, all eyes will be focused on these evolving economic indicators and their broader implications for investors.
Original Source: https://www.cnbc.com/2025/12/03/stock-market-today-live-updates.html
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Publish Date: 2025-12-04 16:50:00
