NEW YORK, December 4, 2025: U.S. stocks slipped on Wednesday as investors weighed weaker-than-expected labor market data and a decline in major technology shares led by Microsoft, while traders assessed prospects for Federal Reserve policy ahead of next week’s interest rate decision. The S&P 500 fell 0.2 percent, the Nasdaq Composite declined 0.5 percent, and the Dow Jones Industrial Average was little changed. Market sentiment was tempered by renewed pressure on the technology sector, which had been a key driver of equity gains in recent months.
Microsoft shares dropped about 2 percent after reports indicated the company was reducing software sales quotas linked to artificial intelligence products. The move weighed on other AI-related stocks, with Nvidia down nearly 1 percent, Broadcom retreating more than 2 percent, and Micron Technology falling over 3 percent. The declines pulled the broader technology index lower, contributing to the overall market weakness. Losses were partially offset by economic data showing an unexpected contraction in private-sector employment. Payroll processor ADP reported that private payrolls fell by 32,000 in November, compared with economists’ expectations for an increase of 40,000.
The report pointed to a cooling labor market and came ahead of Friday’s official U.S. employment figures. Financial analysts noted that the data reinforced expectations for a potential interest rate adjustment by the Federal Reserve at its December 10 meeting. According to the CME FedWatch tool, traders priced in an 89 percent probability of a rate cut, up from about 65 percent in mid-November. U.S. Treasury yields edged lower following the release of the jobs data, while the U.S. dollar was slightly weaker against major currencies. The figures suggested slowing momentum in private hiring, a key indicator of broader economic activity.
U.S. indexes retreat amid mixed tech-sector performance
In corporate news, Marvell Technology shares surged more than 6 percent after the semiconductor company projected solid growth in data center demand. Retailer American Eagle Outfitters rallied more than 15 percent after raising its full-year profit outlook and reporting a strong start to the holiday shopping season. The company said early consumer demand trends had exceeded expectations heading into December. Bitcoin traded above $92,000, extending gains after steep losses earlier in the week. The cryptocurrency had posted its sharpest one-day decline since March on Monday before rebounding in subsequent sessions.
The recovery reflected renewed inflows into digital assets amid broader financial market volatility. Equity markets have entered December following a weaker November, when investors took profits from high-performing technology stocks. Analysts said recent sessions reflected portfolio adjustments as traders balanced growth expectations with mixed economic data and shifting interest rate forecasts. Despite Wednesday’s declines, major U.S. indexes remain near record levels reached earlier this quarter. Investors are now focused on upcoming economic releases, including the Labor Department’s monthly employment report and next week’s Federal Reserve policy announcement.
Market volume remains moderate ahead of major releases
The Fed’s decision will conclude a year marked by heightened inflation concerns, fluctuating bond yields, and strong corporate earnings in select sectors such as technology, energy, and consumer discretionary. As trading continued Wednesday, the market’s tone remained cautious, with investors monitoring developments across both macroeconomic and corporate fronts. Trading volumes were moderate, reflecting a measured approach ahead of key data later in the week. – By Content Syndication Services.