Stock market low
The US stock market closed lower on Thursday as investors stayed careful ahead of important economic data. The Dow Jones Industrial Average fell to 47,847. The S&P 500 slipped to 6,847, and the Nasdaq Composite declined to 23,423. The drops were small, but they showed that traders were not ready to make big moves without more information about the Federal Reserve’s next steps.
Tech stocks responsible
Technology stocks were the main reason for the market’s weak tone. Microsoft Corporation fell almost 2.5% after a report claimed the company had lowered internal targets for sales linked to AI tools. Microsoft denied the report, but the stock remained lower. Nvidia Corporation and Broadcom Inc. also slipped, putting pressure on the S&P 500. Not every tech stock struggled. Nvidia, Meta Platforms Inc., and Tesla Inc. each saw gains at different points of the day, but their moves were not strong enough to lift the broader market.
Mixed signals
New labor market data led to fresh debate about whether the Federal Reserve will cut interest rates on December 10. Layoffs announced in 2024 have now crossed one million, according to Challenger, Gray & Christmas. At the same time, ADP said private payrolls fell more than expected. These two reports increased market expectations for a rate cut, with CME’s FedWatch tool showing an 89% chance of a quarter-point reduction. But another report told a different story. Jobless claims dropped to 191,000, the lowest since September 2022. This pointed to strength in the job market, even though many economists still believe hiring will cool next year.
Individual stocks
Several companies posted strong gains despite wider market caution. Salesforce Inc. rose after issuing a better revenue forecast. Five Below Inc. jumped after reporting strong holiday-category sales, as more shoppers looked for lower prices. Smaller stocks also saw big movements. UiPath Inc. surged nearly 14%. Q/C Technologies climbed almost 30%. Polyrizon saw the largest swing of the day, rising more than 149% as trading volume spiked.
Wait for Friday data
Traders are now focused on Friday’s economic releases. The US Commerce Department will publish delayed figures on consumer spending, household income, and the Personal Consumption Expenditures Index, the Federal Reserve’s main inflation measure. The University of Michigan will also release its latest consumer sentiment survey. These reports may influence how the market trades next week and whether investors believe the Fed will ease policy heading into 2026.
