Traders work on the floor of the New York Stock Exchange (NYSE) after the opening bell rings on December 3, 2025 in New York.
Timothy A. Clary | AFP | Getty Images
After shaking off some of the weakness at the start of the month, the market looks ready to ride Santa’s sleigh, riding a second straight day of gains this week.
Wednesday’s gains came on the back of surprisingly weak private-sector employment data, with payroll firm ADP’s November report showing a loss of 32,000 jobs, well below the 40,000-job gain expected by economists compiled by Dow Jones.
This further strengthened investors’ confidence that the Federal Reserve will cut interest rates at its final meeting of the year on December 9-10.
But before you start celebrating like Charlie Bucket who found the golden ticket to Willy Wonka’s chocolate factory, remember that continued job losses may seem like a portfolio catalyst in the short term but mask economic weakness in the long term.
For now, the market is enjoying a sugar rush, but no one knows if this rally will continue.
What you need to know today
Mr. Huang talks about tip limits. Nvidia CEO Jensen Huang said he met with President Donald Trump on Wednesday to discuss chip export restrictions as lawmakers consider proposals to restrict exports of advanced artificial intelligence chips to countries such as China.
Quantum Computing in Singapore. Singapore-based software company Horizon Quantum said on Wednesday it has become the first private company to operate a quantum computer for commercial purposes in the city-state, ahead of plans to list in the United States.
President Putin of India. New Delhi is scheduled to host Russian President Vladimir Putin for two days starting Thursday, signaling a determination to deepen ties with Moscow. President Putin will visit India to attend the 23rd India-Russia Annual Summit.
Markets rise on expectations for interest rate cuts. All three U.S. indexes rose as traders bet on the Federal Reserve to cut interest rates on the back of weak employment data. The Dow Jones Industrial Average rose 0.86%, the biggest gainer. The S&P 500 rose 0.30% and the Nasdaq Composite rose 0.17%. Asian markets were mainly up, with Japanese stocks leading the region’s gains.
(PRO) Cash is king. Dan Niles, founder of Niles Investment Management, said cash is the best investment idea right now, but there are several other sectors he’s optimistic about.
And finally…
On March 20, 2023, the Bank of Japan (BOJ) head office is visible beyond the cherry blossoms in Tokyo.
Kazuhiro Nogi | AFP | Getty Images
Japan’s central bank faces a policy dilemma as government bond yields continue to hit new highs
The Bank of Japan is in a bind as a sharp rise in government bond yields risks disrupting the policy normalization process.
The Bank of Japan faces a tough choice: stick with its policy of raising interest rates and risk even higher yields, further slowing an already sluggish economy, or keep lowering rates, and even cut them, to support growth, which could further accelerate inflation.
Japanese government bonds have been hitting new highs for the past month. On Thursday, the yield on the benchmark 10-year Treasury note hit a high of 1.917%, surging to its highest level since 2007.
— Lim Huijie
