On December 3, 2025, U.S. stock markets displayed varied performances in response to unexpected private-sector employment data. The Dow Jones Industrial Average (^DJI) rose by 0.9%, adding over 400 points, while the S&P 500 (^GSPC) increased by 0.3%. The Nasdaq Composite (^IXIC) saw a modest gain of 0.2%. This uptick was influenced by the ADP report indicating a loss of 32,000 jobs in November, contrasting with expectations of a modest gain. The decline was primarily attributed to a significant pullback from small businesses. This development has led to nearly 90% of market participants anticipating a quarter-point reduction in the Federal Reserve's interest rate at their upcoming meeting. finance.yahoo.com
In the technology sector, Microsoft (MSFT) shares declined by over 2% following reports that the company is lowering its AI software sales quotas. This news reignited investor skepticism regarding the projected demand for AI products. Semiconductor stocks also faced pressure, with Nvidia (NVDA), Broadcom (AVGO), and TSMC (TSM) each dropping nearly 1%. Conversely, American Eagle Outfitters (AEO) saw its stock surge over 11% after reporting a record-breaking Thanksgiving weekend and strong momentum into the fourth quarter. The company reported a profit per share of $0.53 for the third quarter, surpassing estimates of $0.43 per share, and revenue of $1.36 billion, a 6% year-over-year increase. finance.yahoo.com
Key Takeaways
- Dow Jones Industrial Average rose 0.9%, S&P 500 increased by 0.3%, Nasdaq Composite gained 0.2%.
- ADP report showed a loss of 32,000 private-sector jobs in November, leading to heightened expectations of a Federal Reserve rate cut.
- Microsoft shares declined over 2% due to reports of reduced AI sales quotas.
- Semiconductor stocks Nvidia, Broadcom, and TSMC each dropped nearly 1%.
- American Eagle Outfitters' stock surged over 11% after reporting strong holiday season performance.