Dow Jones and Nasdaq Index: US Indices Diverge as Microsoft Drags Tech Stocks Today

Dow Pushes Higher as Traders Look Past Soft Jobs Data

The Dow’s doing a little work of its own into the mid-session, up about 0.4%, while the S&P 500 is barely green and the Nasdaq is off a touch. Traders shrugged at the weak ADP report and instead leaned into the idea that softer labor data boosts the odds of a cut next week. Microsoft’s slide tried to spoil the mood early, but buyers didn’t let it spread too far across the broader tape.

Technically, the Nasdaq Composite is consolidating inside a zone that stretches all the way to early November. However, it is still holding above the 50-day moving average at 22985.38 and the short-term 50% level at 22959.14, so the bias is still tilted to the upside.

Are Indexes Telling a Clear Story Yet

Not really — but the tone leans constructive. The Dow’s strength is helping hold things together, even as tech drags on the Nasdaq.

Microsoft was down nearly 2% after reports it cut AI-related sales quotas. The company pushed back on that claim, which helped the stock rebound from session lows, but not enough to flip the tech group. Nvidia was slightly lower, and Broadcom slipped more than 1%. Same with Micron — down more than 1% as the AI complex took a breather. Sellers pushed on that pocket, but buyers elsewhere stepped in to offset the pressure.

What’s Driving Sector Rotation Today

Energy leads by a wide margin, up 1.6%, with financials and consumer discretionary also showing some real bid. Industrials and health care are solidly green. Tech sits on the other side of the ledger, down 0.36%, and real estate and utilities are a little weaker as well. The takeaway: traders are rotating into cyclicals and areas more sensitive to a potential rate cut. It’s a bit of a “search for value” day, helped by the idea that slowing payrolls may finally give the Fed cover to ease.

How Much Weight Are Traders Putting on the Weak ADP Print

Plenty — but they’re spinning it bullish. ADP showed a 32,000 drop in private payrolls versus expectations for a 40,000 gain. Under normal conditions, that kind of miss would tighten risk appetite. But with the Fed meeting days away and rate-cut odds near 89%, the market’s treating the softness as confirmation.

Traders want a cut, and the weak print feeds that view. Still, there’s one counterweight: today’s slightly better-than-expected ISM services reading. That helps ease recession chatter enough to keep dip buyers active.

Which Stocks Are Actually Moving the Needle

Outside big tech, there’s real action. Marvell jumped more than 3% as investors warmed to its data-center growth outlook. American Eagle ran more than 14% after lifting its full-year forecast — strong holiday commentary always rings well this time of year.

Bitcoin’s bounce above $92,000 added fuel to crypto-linked names: Coinbase climbed more than 4%, and Robinhood pushed higher as well.

On the downside, real estate names struggled, with Alexandria Real Estate off more than 7%. Netflix and Seagate also weighed on the session.

Looking Into the Afternoon

Traders want to believe the Fed will deliver a cut next week, and today’s data helped that narrative. As long as cyclicals keep catching bids and tech weakness stays contained, the market probably holds its tone into the close.

The next catalyst is simple: every whisper about the December 10 decision. Buyers are leaning in — but not aggressively. They just don’t want to miss the turn if the Fed finally blinks.

More Information in our Economic Calendar.