Rate-Cut Optimism Keeps Market Indexes Pointing Higher

Barry Adams
04 Dec, 2025
New York City

Stocks in New York lacked direction as investors debated rate paths ahead of the Fed's rate actions next week. 

The S&P 500 increased 0.1%, and the tech-heavy Nasdaq Composite decreased 0.2% as investors reviewed the latest batch of earnings. 

Investors are increasingly factoring in a possible 25 basis-point rate cut after the Fed's policy meeting next week. However, those expectations could be dashed if the committee decides to wait and review the impact of the Trump administration's goods tariffs on inflation. 

Private businesses trimmed jobs in November, according to the latest data released by ADP on Wednesday. 

Businesses cut 32,000 net jobs in November, following an upwardly revised 47,000 gain in October. Employers cut payrolls in four of the last six months, declining by the largest amount since March 2023. 

The small companies cut jobs by 120,000, while medium establishments added jobs by 51,000 and large firms increased payrolls by 39,000 in November, according to the ADP's report.

Traders interpreted the labor market's bad news as good news for stocks, and the job market weakness may convince the Fed to lower the fed funds rate range next week.  

 

U.S. Stock Movers 

Snowflake dropped 9.7% to $239.20, after the company's weaker-than-expected outlook overwhelmed the fiscal third quarter results. 

Revenue increased 29% to $1.2 billion from $942 million, net loss shrank to $291.6 million from $327.9 million, and diluted loss per share eased to 87 cents from 98 cents a year ago. 

Snowflake estimated fiscal fourth quarter product revenue to range between $1.195 billion and $1.20 billion, an increase of 27% from a year ago. 

In addition, the company estimated product revenue in fiscal year 2026 at $4.446 billion, an increase of 28% from a year ago. 

Salesforce increased 1.2% to $238.72 after the customer relations management software company reported mixed results in the fiscal third quarter ending in October. 

Revenue increased 10% to $10.3 billion from $9.44 billion, net income advanced to $2.1 billion from $1.5 billion, and diluted earnings per share rose to $2.19 from $1.58 a year ago. 

The company guided fiscal fourth-quarter revenue to range between $11.13 billion and $11.23 billion, an increase between 11% and 12% from a year ago. 

Salesforce estimated diluted net income per share to fall between $1.47 and $1.49 and the current remaining performance obligation to rise by about 15% from a year ago. 

For the full-year fiscal 2026, the company estimated revenue between $41.45 billion and $41.55 billion, an increase between 9% and 10%, and diluted earnings per share to range between $7.22 and $7.24.