On Wednesday, the S&P 500, Dow Jones, and Nasdaq 100 closed higher, with futures also rising. The markets reacted positively to a weaker than expected Nov ADP employment report, leading to expectations of a Fed rate cut next week. Bond yields fell, with the 10-year T-note yield dropping to 1.06%.
Stocks rebounded on Wednesday, reaching multi-week highs, driven by strength in chipmakers. Microchip Technology and Marvell Technology reported better-than-expected results, boosting the tech sector. Despite early losses due to US labor market concerns, stocks recovered after the Nov ISM services report showed unexpected expansion.
AI demand concerns arose as Microsoft reportedly lowered AI software sales quotas due to consumer resistance. US MBA mortgage applications fell, with purchase mortgages up and refinancing down. The average 30-year fixed mortgage rate decreased to 6.32% from 6.40%.
The US Nov ADP employment change fell by -32,000, pointing to a weaker labor market. The US Sep manufacturing production was unchanged, while the Nov ISM services index unexpectedly rose to 52.6, indicating strong service sector expansion. President Trump plans to announce the new Fed Chair in early 2026.
Q3 corporate earnings season is wrapping up with 83% of S&P 500 companies beating forecasts. Overseas, Euro Stoxx 50 rose, while China’s Shanghai Composite fell. Interest rates remained stable, with T-note prices rising. European bond yields dropped, and Eurozone Oct PPI met expectations.
US stock movers included chipmakers like Microchip Technology and Marvell Technology, which reported strong Q3 results. Cryptocurrency-exposed stocks also rose. Homebuilders like DR Horton and building suppliers surged on expectations of a Fed rate cut. Pharvaris NV, American Eagle Outfitters, and Vertex Pharmaceuticals also saw gains.
On the downside, Pure Storage and Gitlab fell after issuing lower-than-expected forecasts. Acadia Healthcare and Alexandria Real Estate Equities saw declines, while Netflix, Microsoft, and Fiserv Inc. also closed lower. Earnings reports are expected from Brown-Forman Corp, Dollar General, Hewlett Packard Enterprise, and more on 12/4/2025.
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