Briefing.com

Daily Sector Wrap

Updated: 03-Dec-25 16:27 ET
Closing Market Summary: Major averages extend rebound ahead of FOMC decision

The S&P 500 (+0.3%), Nasdaq Composite (+0.2%), and DJIA (+0.9%) steadily improved throughout the day, notching gains that now seat the major averages at or above their baselines for the week. 

Today's action marks the second consecutive higher finish for the major averages after Monday's cryptocurrency-fueled slide, though the gains came in an entirely different fashion. 

Yesterday's gains came on leadership from tech names and weaker breadth that saw just three S&P 500 names trade higher. Today, however, advancers outpaced decliners by a roughly 5-to-2 clip on the NYSE and the Nasdaq, and nine S&P 500 sectors finished higher. 

To add to the juxtaposition, the information technology sector (-0.4%) was one of very few weak spots in today's trade, though its substantial improvement throughout the session played a key role in the major averages finishing higher across the board. 

Microsoft (MSFT 477.73, -12.27, -2.50%) was at the center of what was arguably today's most widely discussed news item. Before the open, The Information reported the company lowered AI software sales quotas as customers resist newer products. A spokesperson for the company refuted the claim to CNBC, and The Information then changed its headline to reflect that the company is lowering AI sales growth targets, not sales quotas. 

The stock's retreat set a shaky early tone for mega-cap and tech stocks. 

NVIDIA (NVDA 179.59, -1.87, -1.03%), which inhabits both of those realms, traded lower, though relative strength across chipmaker names pushed the PHLX Semiconductor Index 1.8% higher. 

A 0.3% dip in the utilities sector (which has substantially underperformed this week) was the only other blemish on a day that was defined by broad-based strength. 

The energy sector (+1.8%) captured the widest gain as crude oil futures settled today's session $0.28 higher (+0.5%) at $58.95 per barrel, and natural gas settled today's session $0.16 higher (+3.3%) at $5.00 per MMBtu, a level not seen since December 2022. 

The financials sector (+1.3%) was another top mover, supported by solid gains across its major banking names. Robinhood Markets (HOOD 133.64, +7.69, +6.11%) and Coinbase Global (COIN 276.92, +13.66, +5.19%) were once again at the top of the sector's standings as Bitcoin continues to recover from Monday's slide, reclaiming the $93,000 mark. 

Elsewhere, the consumer discretionary sector (+0.8%) reflected the mixed disposition across the market's largest names that saw the Vanguard Mega Cap Growth ETF finish flat. Tesla (TSLA 446.74, +17.50, +4.08%) traded sharply higher after Politico reported that President Trump is considering issuing an executive order next year to accelerate growth and development across the robotics industry. Amazon (AMZN 232.43, -1.99, -0.85%), however, was a laggard.

Homebuilders such as D.R. Horton (DHI 165.00, +6.54, +4.13%) and Lennar (LEN 133.16, +3.43, +2.64%) contributed to the gains as the market's elevated expectations for a December rate cut continue to hold steady. The iShares U.S. Home Construction ETF finished 2.1% higher. 

Though not constituents of the consumer discretionary sector, American Eagle (AEO 23.97, +3.14, +15.07%) and Dollar Tree (DLTR 112.92, +3.94, +3.61%) turned in solid earnings reports, which boosted retailer names and sent the State Street SPDR S&P Retail ETF 1.4% higher. 

The market also received a full slate of economic data this morning. A surprise dip in the November ADP Employment Change Report (-32K; Briefing.com consensus: 20K) prompted some questions around the growth outlook, though the solid performances across cyclical sectors and the outperformance of the small-cap Russell 2000 (+1.9%) suggest that the market remains fixated on the potential of a rate cut to keep the economy on a growth trajectory. 

Ultimately, today's move, and its stark contrast to yesterday's, highlights some back-and-forth action as the market awaits its next major catalyst in the form of next week's FOMC decision. While stocks have seen some choppiness, the major averages now sit at or above their unchanged levels for the week, an indication that, even with the day-to-day swings, underlying support remains strong as the market positions itself for next week's FOMC decision.

  • Nasdaq Composite: +21.5% YTD
  • S&P 500: +16.5% YTD
  • Russell 2000: +12.6% YTD
  • DJIA: +12.6% YTD
  • S&P Mid Cap 400: +5.8% YTD

Reviewing today's data:

  • Weekly MBA Mortgage Applications Index -1.4%; Prior 0.2%
  • November ADP Employment Change -32K (Briefing.com consensus 20K); Prior was revised to 47K from 42K
  • September Import Prices 0.0%; Prior was revised to 0.1% from 0.3%
  • September Import Prices ex-oil 0.2%; Prior was revised to 0.1% from 0.4%
  • September Export Prices 0.0%; Prior was revised to 0.1% from 0.3%
  • September Export Prices ex-ag. 0.0%; Prior was revised to 0.1% from 0.3%
  • September Industrial Production 0.1% (Briefing.com consensus 0.1%); Prior was revised to -0.3% from 0.1%; September Capacity Utilization 75.9% (Briefing.com consensus 77.3%); Prior was revised to 75.9% from 77.4%
    • The key takeaway from the report is the downshift in the capacity utilization rate, which implies there is slack in the industrial sector that should translate into reduced inflation pressure.
  • November S&P Global U.S. Services PMI - Final 54.1; Prior 54.8
  • November ISM Services 52.6% (Briefing.com consensus 52.4%); Prior 52.4%
    • The key takeaway from the report is that activity in the services sector remains in expansion mode, yet that expansion is somewhat tepid, evidenced by this low November reading that is 10 percentage points less than the 12-month average since February 2022, when it stood at 62.6%.

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