Wall Street Climbs Amid Fed Rate Speculation and AI Stock Surges

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•  03 Dec 2025
 

•   AEO  
   
  -0.29%
•   AI  
   
  +3.02%
•   COIN  
   
  +1.12%
•   CRM  
   
  +0.65%
•   CRWD  
   
  +2.18%

Wall Street closed on a positive note, with major indices rising despite mixed signals from macroeconomic data. The S&P 500 saw broad gains even as some big tech stocks faced pressure, the Nasdaq inched up 0.2%, the S&P 500 added 0.3%, and the Dow jumped 0.9%. Investors seemed unfazed by the latest employment reports, focusing instead on positioning ahead of the Federal Reserve’s rate decision next week.

Bond markets reflected the cautious sentiment, with prices climbing and yields falling. The two-year Treasury yield dropped below 3.5%, while the dollar weakened across major currencies, signaling expectations that the Fed may take a softer approach. Bitcoin surged past $93,000, highlighting renewed appetite for risk assets.

The latest ADP employment report revealed a sharp slowdown in the U.S. labor market. Private-sector employment fell by 32,000 jobs in November, contrasting sharply with expectations of modest gains. This reversal from October’s adjusted increase of 47,000 jobs underscores a broad-based weakness led primarily by small businesses, though education and healthcare showed some growth. For traders, this data intensifies focus on the Fed, which markets now price at an 89% probability of a 0.25% rate cut on December 10. The upcoming PCE inflation report will likely trigger heightened market volatility, making it a key event for short-term strategy.

$TSLA Wall Street closed on a positive note, with Tesla rising 4% as major indices gained despite mixed macro data. The Nasdaq increased 0.2%, the S&P 500 added 0.3%, and the Dow jumped 0.9%. Investors focused on positioning ahead of the Fed’s rate decision next week, undeterred by softer employment numbers.

$MRVL Marvell Technology surged 7% after reporting a strong Q3 and announcing the acquisition of AI startup Celestial AI for $3.25 billion. The company is expanding its AI-focused data center operations, signaling confidence in long-term growth and driving market excitement.

$WIX Wix jumped 7% alongside tech peers, benefiting from positive investor sentiment in the software and digital solutions sector, despite broader tech index softness.

$IRBT iRobot soared over 70% on rumors of potential U.S. government support. The company continues to face high short interest and steep declines earlier this year, but the market responded strongly to the speculative upside.

$MSFT Microsoft slipped 2.5% after lowering AI sales targets, highlighting the gap between enthusiasm for AI products and adoption in enterprise environments. Analysts view this as a cautionary note for tech investors balancing growth and execution.

$AEO American Eagle Outfitters climbed 14% following a record quarterly report and strong same-store sales growth. Strategic campaigns featuring high-profile figures boosted engagement and attracted a younger audience, supporting the stock’s surge.

$DLTR Dollar Tree edged up 3.61% after posting adjusted earnings above expectations and raising its annual guidance, giving investors confidence amid pressures on retail margins.

$M Macy’s declined modestly despite beating earnings and revenue forecasts. Strong same-store sales partially offset revenue declines from store closures, illustrating mixed signals in the retail sector.

$CRWD CrowdStrike slipped 1.57% even after exceeding Q3 earnings expectations and raising future guidance. The stock’s high valuation and recent rapid gains prompted some investors to take profits cautiously.

$GTLB GitLab tumbled 12.84% after reporting a Q3 loss and warning of ongoing weakness in the public sector, though the company raised fiscal year guidance and appointed a new CFO to strengthen financial leadership.

$ABTC American Bitcoin Corp plummeted 35% following the end of its lockup period. The stock’s value fell from over $7 billion to below $2 billion, reflecting the volatility of crypto-linked equities, before recovering slightly with a 9% intraday rebound.

$MSTR MicroStrategy rose 3.89% as Bitcoin rebounded past $93,000, boosting one of the largest corporate holders of the cryptocurrency and signaling renewed investor interest in digital assets.

$COIN Coinbase advanced 5.19% while $HOOD Robinhood added 6.11%, benefiting from the broader crypto market rally and renewed risk appetite among investors.

The market now turns attention to upcoming earnings from $AI C3.ai $CRM Salesforce $SNOW Snowflake and $PATH UiPath. These reports could create additional volatility in the tech and AI sectors as traders position themselves for year-end opportunities.

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