Equities Mixed as Traders Assess Labor Market Data Amid Fed Rate-Cut Expectations

04:50 PM EST, 12/04/2025 (MT Newswires) -- US equities ended mixed on Thursday as markets digested the latest labor market data, while keeping bets for a Federal Reserve interest rate cut largely intact.

The Nasdaq Composite rose 0.2% to 23,505.1, while the S&P 500 edged up 0.1% to 6,857.1 -- both advancing for a third consecutive day. The Dow Jones Industrial Average slipped 0.1% to 47,850.9 after a two-day rise.

Among sectors, health care and consumer staples saw the biggest drop, while industrials led the gainers.

In economic news, US-based employers announced roughly 1.2 million layoffs for the first 11 months of 2025, up 54% from a year earlier and the highest year-to-date total since 2020, Challenger Gray & Christmas said. Job cuts in November decreased 53% sequentially, according to the report.

"Layoff plans fell last month, certainly a positive sign," said Andy Challenger, the firm's chief revenue officer. "That said, job cuts in November have risen above 70,000 only twice since 2008."

Separately, the Department of Labor reported that weekly applications for unemployment insurance in the US reached their lowest level since Sept. 24, 2022, while continuing claims also fell.

The National Federation of Independent Business said a seasonally adjusted 33% of small business owners in the US reported job openings they couldn't fill last month, up one point from October and the first rise since June. Unfilled job openings continued to be above the historical average of 24%, according to the report.

"The economy has continued to grow steadily despite the recent government shutdown," NFIB Chief Economist Bill Dunkelberg said. "On Main Street, job growth continues to be constrained by a lack of qualified employees."

The new batch of labor market data followed Wednesday's ADP (ADP) report showing employment in the US private sector surprisingly fell in November.

Overall, the latest labor market indicators are sending mixed signals, according to Stifel.

"While hardly gaining momentum, the labor market is a far cry from the worries of a massive deterioration that would force the Fed to make a third-round rate cut at year-end," Stifel Chief Economist Lindsey Piegza said. "There are those on the (Federal Open Market Committee) that continue to support further action, but there are also a number of officials that are still concerned about the lack of price stability and potential for a further acceleration into the new year as inventories and margin cuts will no longer shield consumers from the burden of higher costs."

The odds of a 25-basis-point rate cut by the Fed next week reached 87% Thursday, down from 90% Wednesday, but up from 69% a month ago, according to the CME FedWatch tool.

The Bureau of Labor Statistics won't publish October employment data that was delayed due a now-ended federal government shutdown. The November jobs report is scheduled for release about a week after the Fed announces its next monetary policy decision Dec. 10. The central bank has reduced its benchmark lending rate by a total of 50 basis points this year amid concerns about the labor market.

US Treasury yields were higher, with the 10-year rate up 3.9 basis points at 4.11% and the two-year rate increasing 3.1 basis points to 3.53%.

In company news, Dollar General (DG) shares jumped 14%, the top gainer on the S&P 500, as the discount retailer raised its full-year outlook after posting better-than-expected fiscal third-quarter results.

Salesforce (CRM) was the best performer on the Dow, up 3.7%. The customer relationship management platform late Wednesday logged fiscal third-quarter earnings that exceeded Wall Street's estimates, while revenue rose less than expected.

Snowflake (SNOW) shares plunged 11%. Late Wednesday, annual growth in the cloud-based data platform company's fiscal third-quarter product revenue decelerated sequentially.

Intel (INTC) shares slumped 7.5%, the worst performer on the S&P 500. The chipmaker has decided to keep its networking and communications unit within the company after a strategic review, Reuters reported late Wednesday, citing the company. Intel (INTC) was exploring options to sell various assets earlier this year to improve its financial position by shaving off non-core businesses, according to the report.

West Texas Intermediate crude oil was up 1.3% at $59.74 a barrel in Thursday late-afternoon trade.

"Oil prices firmed after Ukrainian attacks on Russian oil infrastructure raised supply concerns, while stalled peace talks tempered hopes of restoring Russian flows to global markets," D.A. Davidson said in a note to clients.

Gold was up 0.2% at $4,238.90 per troy ounce, while silver fell 1.8% to $57.55 per ounce.

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