| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 47,882.90 | 408.44 | 0.86% |
| S&P 500 | 6,849.72 | 20.35 | 0.30% |
| Nasdaq | 23,454.09 | 40.42 | 0.17% |
| VIX | 16.08 | -0.51 | -3.07% |
| Gold | 4,235.20 | 2.7 | 0.06% |
| Oil | 59.01 | 0.06 | 0.10% |
OVERVIEW OF THE US MARKET
Wall Street closed higher on December 3, 2025, buoyed by gains in energy and financial stocks amid softer labour data that bolstered bets for a Federal Reserve rate cut this month. The Dow Jones Industrial Average rose 0.86% to 47,882.90, marking its strongest session in over a week, while the S&P 500 added 0.30% to 6,849.72 and the Nasdaq Composite edged up 0.17% to 23,454.09. The advance came despite weakness in mega cap technology names, reflecting a rotation away from AI-driven stocks toward cyclical sectors as investors digested mixed economic signals.
Energy led the S&P 500 sectors with a 1.83% gain, fuelled by a 0.5% rise in West Texas Intermediate crude to around $59 per barrel, amid ongoing supply concerns and a weaker dollar. Financials climbed 1.27%, benefiting from optimism around potential rate relief, while industrials rose 0.95%. In contrast, information technology slipped 0.42%, extending its underperformance since the index’s October 28 peak, as concerns mount over lofty valuations in the AI trade. Nvidia Corp. fell 1.03% on high volume of 164.1 million shares, amid uncertainty over China accepting its H200 chips under potential US restrictions. Microsoft Corp. dropped in after-hours following reports of softer AI tool demand, though aggregate sales quotas remain unchanged. Other notable movers included Ondas Holdings up 10.53% on 139.9 million shares and Plug Power gaining 5.69%.
Crypto-linked stocks faced turmoil, with American Bitcoin Corp., co-founded by Eric Trump, plunging over 50% intraday before paring losses to 35%, triggered by the end of a share lockup period. The drop symbolized broader woes in Trump-family tied ventures, which have erased over $1 billion in value since October, outpacing Bitcoin’s 25% decline. However, Bitcoin rebounded 6% above $90,000, spurred by positive regulatory signals like SEC Chairman Paul Atkins’ innovation exemption plans and Vanguard allowing crypto ETFs on its platform. Smaller tokens like Ether and Solana jumped over 8%.
Economic data reinforced rate-cut expectations: ADP reported a 32,000 drop in private payrolls, the steepest since early 2023, signalling labour market cooling, while ISM services expanded modestly with prices paid at a seven-month low. Swaps priced over 90% odds for a 25 basis-point Fed cut in December, up from prior sessions. Treasury Secretary Scott Bessent expressed optimism on the economy and tariff legality, noting rate cuts are needed amid sectoral weaknesses.
Investors eye Friday’s delayed September PCE inflation data, expected to show core at 0.2% monthly, keeping annual around 3%—sticky but stable. Amid tariff uncertainties, strategists from RBC and others see potential for sector rotation, with AI jitters high but earnings growth limiting downside. The S&P’s rebound without Big Tech leadership suggests broader economic confidence, though valuations at 28 times forward earnings warrant caution.
OVERVIEW OF THE AUSTRALIAN MARKET
Australian shares edged higher on December 3, 2025, closing modestly up as gains in mining and energy offset weakness in health care, amid slightly softer-than-expected GDP data that failed to shift rate expectations. The S&P/ASX 200 rose 0.18% to 8,595.2, while the All Ordinaries added 0.19% to 8,894.2. The session was range-bound, with advancers outpacing decliners 143 to 129 in the ASX 300, reflecting cautious sentiment ahead of key US data.
Utilities led sectors with a 0.92% gain, followed by energy at 0.76% on firmer oil prices and real estate up 0.73%. Materials rose 0.28%, supported by copper’s surge to records amid global supply worries and a weaker US dollar. Standouts included European Lithium up 18.2% on substantial holding changes, Predictive Discovery gaining 16.8% after a superior acquisition offer, and 4DMedical surging 16.0% on a US$10 million Philips deal. Uranium plays like Boss Energy (+7.0%), Bannerman Energy (+6.8%), and Paladin Energy (+5.2%) advanced amid sector strength, while coal names Terracom (+15.1%) and Coronado Global (+11.7%) benefited from broader commodity firmness. VanEck Bitcoin ETF rose 7.1% as Bitcoin rebounded above $90,000.
Health care lagged at -0.76%, with industrials down 0.34% and consumer staples off 0.10%. Laggards included Robex Resources down 12.2% on a superior proposal receipt, Megaport falling 6.3%, and Block slipping 6.0%. HMC Capital dropped 5.6%, extending downtrends.
September quarter GDP grew 0.4% quarterly—below 0.7% forecast—but June’s upward revision lifted annual to 2.1%, ahead of RBA’s 2026 outlook. Net exports contributed positively, but consumer weakness persists, with AMP economist My Bui noting sensitivity to rates and tax cuts. Bond yields rose, with 10-year at 4.65%—up over 50 basis points in months—signalling market pricing in hikes, not cuts, as 2-year yields exceed RBA’s 3.60% cash rate.
US softer jobs data drove AUD/USD to a one-month high of 0.6599, up 0.55%, breaking trend lines and bolstering exporters. Futures point to mild gains Thursday, with Australian trade and household spending due. Amid tariff uncertainties, strategists eye rotation potential, though rising yields drag on stocks versus risk-free bonds yielding around 4-4.7%.
