Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Nov. 25, 2025.
Brendan McDermid | Reuters
The S&P 500 and Nasdaq Composite rose slightly on Thursday as investors prepared for next week’s interest rate decision from the Federal Reserve.
The broad-based index inched up 0.11% to close at 6,857.12, while the Nasdaq Composite traded higher by just 0.22% to finish at 23,505.14. The Dow Jones Industrial Average slipped just 31.96 points, 0.07%, to 47,850.94.
Treasury yields moved higher, while bitcoin resumed selling, pulling back 0.5%. The cryptocurrency dipped below $85,000 on Monday, hitting its lowest level since March. But, the token rebounded early Tuesday and has continued to trade above the $90,000 level through the week, offering a glimmer of hope to downtrodden crypto investors.
Investors focused on a report from job placement firm Challenger, Gray & Christmas showing announced job cuts in November from U.S. employers moved further ahead of 1 million for the year as corporate restructuring, artificial intelligence and tariffs helped pare job rolls. On Wednesday, numbers from ADP revealed a surprising slump in private payrolls.
Mounting signs that the labor market is softening has led Wall Street to be convinced the Fed will cut rates a quarter percentage point at its Dec. 10 meeting, the last of the year. Markets are pricing in an 87% chance of a cut next Wednesday, far higher than just a couple weeks ago, according to the CME FedWatch tool.
“The markets have done well year to date, with strength in the back half of November, and I think it wouldn’t be surprising to me to see markets just kind of move sideways from here” said Tim Holland, chief investment officer at Orion. “The big news is the 25 basis point rate cut, but that’s been so widely telegraphed, I’d be shocked if we didn’t get it. The market expects it. So, maybe after a great 11 months and some recent volatility, we’re just marking time, maybe even into year-end, and then we’ll see how 2026 kicks off.”
On Thursday, investors largely overlooked the latest weekly jobless claims numbers that showed new applications for unemployment insurance at their lowest level since Sept. 2022. Jobless claims for the week ended Nov. 29 totaled a seasonally adjusted 191,000, down 27,000 from the prior period and below the Dow Jones consensus estimate for 220,000.
“With each data point that tells us the bottom isn’t falling out, I think the markets breathe a sigh of relief. Even though the initial claims data today was skewed by the Thanksgiving holiday, I think that was very well received,” Holland added. “I don’t think you’re going to get any data that knocks the Fed off of a cut next week between now and then.”
Other important economic releases this week come Friday when the Commerce Department releases delayed September data on consumer spending and incomes and the personal consumption expenditures index, the Fed’s primary inflation gauge. The University of Michigan will also release its consumer survey for December on Friday.
Salesforce was a key winner during Thursday’s session, rising nearly 4% after the software company offered a stronger-than-expected revenue forecast. Five Below also rose more than 3% after the discount retailer’s earnings flew past Wall Street’s estimates.
Stocks posted a winning session in the prior trading day, though the AI trade continued to wobble. The tech sector was the biggest laggard among S&P 500 sectors, dragged lower by losses in Microsoft, Nvidia and Broadcom.
— With additional reporting from CNBC’s Jeff Cox