US Equity Indexes Mixed Following Divergent Labor Market Data

05:08 PM EST, 12/04/2025 (MT Newswires) -- US equity indexes traded mixed on Thursday as a contrast in labor market data weighed on market expectations for next week's monetary policy easing, pushing government bond yields higher.

The Nasdaq Composite rose 0.2% to 23,505.14, and the S&P 500 edged 0.1% higher to 6,857.12. The Dow Jones Industrial Average slipped less than 0.1% to 47,850.94. Consumer staples, healthcare, and consumer discretionary were among the decliners, while industrials, technology, and communication services led the gainers.

Initial jobless claims fell to 191,000 in the week ended Nov. 29, the lowest since September 2022, from an upwardly revised 218,000 in the previous week. The expectations in a Bloomberg-compiled survey were for 220,000.

The latest read is only about 10,000 higher than the lowest prints since the 1960s, according to a Jefferies note. "This week's reference week includes Thanksgiving, which is notorious for making seasonal adjustment difficult."

Outplacement firm Challenger, Gray & Christmas said Thursday that companies planned to cut 71,321 jobs in November, down from 153,074 in October but above the 57,727 a year ago.

"Layoff plans fell last month, certainly a positive sign," said Andrew Challenger, the company's senior vice president. "That said, job cuts in November have risen above 70,000 only twice since 2008: in 2022 and in 2008."

The probability of the Federal Open Market Committee cutting rates by 25 basis points on Dec. 10 is 87%, according to the CME FedWatch tool. That compares with 90% on Wednesday, over 83% a week ago, and almost 69% a month earlier.

"There are those on the Committee that continue to support further action" to ease policy, Stifel Chief Economist Lindsey Piegza said in a note.

"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," Piegza added.

Most US Treasury yields rose, with the two-year yield up 3.7 basis points to 3.52%. The 10-year yield jumped 4.2 basis points to 4.1%.

The US Dollar index rose 0.2% to 99.07.

Meta Platforms (META) Chief Executive Mark Zuckerberg discussed cuts as steep as 30% for next year in its budget to build the so-called metaverse, Bloomberg reported, citing people familiar with the matter. Shares jumped 3.4%, the top gainer on the Nasdaq.

Dollar General (DG) shares surged 14%, the leader on the S&P 500, after the firm posted higher fiscal Q3 earnings and net sales, and raised its fiscal 2025 guidance.

Intel (INTC) has decided to keep its networking and communications unit within the company after a strategic review, Reuters reported late Wednesday, citing the company. Shares dropped 7.5%, the worst performer on the Nasdaq.

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