Wall Street returns to green despite Microsoft's decline

VTV.vn - Microsoft fell 3% in the session but Wall Street still increased thanks to high expectations for the Fed's easing decision.

Traders work at the New York Stock Exchange, USA. (Photo: THX/TTXVN)

The US stock market rose on December 3, as a series of newly released economic data helped maintain high expectations that the US Federal Reserve (Fed) will cut interest rates next week, despite a decline in Microsoft shares that somewhat limited the overall increase.

At the end of this session, the Dow Jones industrial index increased 408.44 points, or 0.86%, to 47,882.90 points, the S&P 500 index increased 20.35 points, or 0.30%, to 6,849.72 points, and the Nasdaq technology index increased 40.42 points, or 0.17%, to 23,454.09 points.

One notable development in the session was that Microsoft shares fell as much as 3% after it was reported that the tech giant had cut its AI software sales quotas because many sales staff failed to meet targets for the fiscal year ending in June 2026. However, the stock recovered somewhat from its session low after CNBC reported that Microsoft denied the information, helping to pull the S&P 500 and Nasdaq back into positive territory. Microsoft shares ended the session down 2.5%.

The rally was fueled by new economic data that bolstered the case for a Fed rate cut. The Institute for Supply Management (ISM) said its service sector index was little changed in November, coming in at 52.6, down from 52.4 in October. ADP's employment report also showed a surprise drop in private sector employment in November.

With these figures, Keith Buchanan, senior portfolio manager at Atlanta-based investment firm Globalt Investments, said the Fed will have more grounds to support rate cuts in the face of weak employment data. Traders' expectations for a 0.25 percentage point cut at next week's meeting rose to 89% after the data was released, up from about 87% at the start of the day, according to CME's FedWatch tool.

Investors are also weighing the news that the Trump administration abruptly canceled interviews with the final candidates for the Fed chair position, fueling speculation that Kevin Hassett, Trump’s top economic adviser and a proponent of aggressive rate cuts, will replace Jerome Powell in May.

Source: https://vtv.vn/pho-wall-xanh-tro-lai-bat-chap-cu-giam-cua-microsoft-100251204094525026.htm