Intraday Market Update - U.S. Stock Market Performance, December 03, 2025

The U.S. stock market is advancing in mid-session trading, with all major indices—S&P 500 (+0.30%), NASDAQ Composite (+0.45%), Dow Jones Industrial (+0.65%), and Russell 2000 (+0.98%)—posting gains [0]. The Russell 2000’s outperformance indicates broad market participation in the rally, particularly among small-cap stocks. Financial Services (+1.07%), Healthcare (+0.60%), and Consumer Cyclical (+0.56%) are the leading sectors, while Communication Services (-0.75%) lags [0].

Key catalysts driving the session include a weaker-than-expected ADP private payroll report showing a loss of 32,000 jobs (versus a 40,000 gain forecast) [2]. Although this signals labor market softening, it has kept expectations for a 25-basis-point Fed rate cut at next week’s FOMC meeting alive [4]. Complementing this, the ISM reported stronger-than-expected services sector growth with slower price increases—giving the Fed additional leeway for policy easing [3]. Treasury yields have eased to 4.06%, supporting stock valuations amid these rate cut hopes [3].

Corporate news has also influenced trading: Marvell Technology (MRVL) surged 6% after beating earnings estimates and announcing a $3.25 billion acquisition of Celestial AI [3]. American Eagle Outfitters (AEO) jumped 15.4% on better-than-expected earnings and strong holiday shopping momentum [3]. Capricor Therapeutics (CAPR) rallied 307% following positive phase 3 trial results for its Duchenne muscular dystrophy therapy [3]. In contrast, Microsoft (MSFT) fell 2.6% due to profit-taking, and Macy’s (M) slipped 1.4% despite an earnings beat, as high year-to-date gains tempered expectations [3].

1. The disconnect between weak labor data (ADP) and strong services sector growth has balanced market sentiment: it keeps rate cut hopes alive without sparking recession fears, supporting broad-based gains.
2. Small-cap outperformance (Russell 2000 leading) suggests growing investor confidence beyond large-cap tech, indicating a more resilient market structure.
3. The Financial Services sector’s leadership reflects expectations of a rate cut environment, which typically benefits interest-sensitive industries.

• Risks
  : The ADP report’s historical weak correlation with the official jobs report (delayed until December 16) could reverse rate cut expectations if revised data shows labor market strength. Tech sector profit-taking (e.g., MSFT) may limit broader index gains if momentum shifts.
• Opportunities
  : Financial Services and Consumer Cyclical sectors present opportunities amid rate cut expectations and holiday shopping strength. Stock-specific opportunities exist in companies with strong earnings (MRVL, AEO) and positive clinical results (CAPR).
• Afternoon Considerations
  : With no major scheduled catalysts, the market will likely maintain focus on rate cut speculation and incremental holiday shopping updates.

• Indices
  : All major indices up; Russell 2000 (+0.98%) leads.
• Sectors
  : Financial Services (+1.07%) leads; Communication Services (-0.75%) lags.
• Catalysts
  : Weak ADP data (reinforcing rate cut expectations), strong ISM services growth, key corporate earnings and announcements.
• Notable Movers
  : MRVL (+6%), AEO (+15.4%), CAPR (+307%), MSFT (-2.6%), M (-1.4%).
• Afternoon Outlook
  : No major catalysts; focus on rate cut hopes and holiday updates.