Stock indexes showed mixed movement today, with the S&P 500 up +0.18%, Dow Jones up +0.47%, and Nasdaq down -0.06%. E-mini S&P futures rose +0.16%, while E-mini Nasdaq futures fell -0.08%. Chipmakers boosted stocks, but concerns arose over AI demand. US economic data and a potential Fed rate cut next week influenced market sentiment.
US Nov ADP employment unexpectedly dropped by -32,000, signaling labor market weakness. Sep manufacturing production met expectations, while Nov ISM services index rose unexpectedly to 52.6. President Trump plans to announce a new Fed Chair in early 2026, affecting Fed independence. Market focus remains on upcoming US economic reports. The markets are pricing in a 98% chance of a -25 bp rate cut at the next FOMC meeting.
Q3 corporate earnings season saw 83% of S&P 500 companies surpass forecasts, with earnings up +14.6%. Overseas markets were mixed, with Euro Stoxx 50 up +0.18% and China’s Shanghai Composite down -0.51%. Interest rates saw a dip in T-note yields amid expectations of a Fed rate cut. European bond yields fell, while Eurozone Oct PPI was in line with expectations.
Eurozone and UK PMI data revised upwards, showing expansion in economic activity. Swaps indicate a low chance of an ECB rate cut in December. Stock movers included chipmakers like Microchip Technology and ON Semiconductor, buoyed by strong earnings. Cryptocurrency-related stocks also rose. Homebuilders and building suppliers gained due to Fed rate cut expectations. Notable gainers included Pharvaris NV, American Eagle Outfitters, and Fiserv Inc.
Stellantis NV and Astera Labs saw upgrades, while Pure Storage and Gitlab faced declines. Acadia Healthcare and Alexandria Real Estate Equities experienced losses. Netflix, Microsoft, and Dollar Tree Inc faced declines due to various factors. Earnings reports scheduled for 12/3/2025 include Dollar Tree Inc, Salesforce Inc, and more. Market sentiment remains influenced by economic data and Fed rate cut expectations.
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