US Stock Market Today: Meta Stocks Jump 4% as Traders Weigh Fed Outlook Against Fresh US Labor Signals

US stocks traded near record territory as investors weighed stronger labor data against expectations for a Federal Reserve rate cut next week. The S&P 500 showed a small gain, while the NASDAQ 100 stayed close to flat in early New York trading. The Dow Jones Industrial Average also moved little, underscoring a cautious mood.

Investors continued to price in policy easing despite a drop in jobless claims to the lowest level in more than three years. The report signaled that employers still hold onto workers despite recent layoff headlines. Markets treated the data as noisy because of the Thanksgiving period and kept the base case for a December rate cut intact.

Fed Rate Cut Expectations Support Global Equity Markets

Across global markets, risk sentiment remained constructive, though not euphoric. The Stoxx Europe 600 rose about 0.5%, while the MSCI World Index added 0.3%. These gains reflected ongoing confidence that an easier policy in 2026 could support earnings growth.

Currency moves stayed contained. The Bloomberg Dollar Spot Index slipped 0.1%, while the euro traded close to $1.17. The Japanese yen gained nearly 0.4% after reports indicated that key Japanese officials would not resist a potential Bank of Japan rate increase.

Tech Stocks, AI Sentiment and Sector Rotation

Technology stocks showed mixed performance as investors reassessed the powerful rally driven by artificial intelligence themes. Meta shares jumped nearly 4% after reports that the company plans to cut spending on its metaverse division. Traders interpreted the shift as a move toward tighter discipline and a greater focus on profitable areas, including AI and advertising.

AI enthusiasm continued to influence other major software names. Salesforce gained after issuing a revenue outlook that exceeded analyst forecasts and pointed to steady demand for AI-enabled tools. Snowflake, by contrast, declined after its margin guidance fell short of expectations and analysts flagged a slowdown in product revenue growth.

Volatility inside the tech sector has increased, yet strategists noted that the broader S&P 500 would already sit at record highs even without technology.

Labor Data, Equity Flows and the Road Ahead for the Bull Market

Recent economic reports reinforced the view that the labor market remains tight but not overheating. Weekly jobless claims hit their lowest level in more than three years, while a separate Challenger, Gray & Christmas survey showed that announced layoffs fell from October levels. However, they still ranked as the highest for any November in several years, underscoring ongoing restructuring in some industries.

Strategists highlighted historical patterns that support the current bull market. Research from Truist showed that in past cycles, bull markets that reached a third year often extended gains into the fourth, with average returns of about 15%. Lower policy rates, if the Fed cuts next week, could add another layer of support.

Equity flow projections also offer a positive backdrop. JPMorgan estimates net equity demand could reach around $700 billion in 2026, the strongest since 2023. The bank expects investors to favor US equities over Europe and emerging markets, citing stronger earnings prospects and continued interest in AI-driven companies.

For now, the S&P 500 holds near all-time highs, with traders watching the upcoming Fed decision as the next major catalyst. A clear message on the rate path could determine whether the year ends with a classic “Santa rally” or a more muted finish.

Corporate Moves

• Meta Platforms plans to cut spending on its metaverse unit and faces a potential EU pause on some new AI features in WhatsApp.

• Paramount Skydance says Warner Bros. Discovery is not running a fair sale process and is not serving shareholder interests.

• Salesforce raises its revenue outlook as demand for its AI tools supports growth and reassures investors.

• Snowflake issues an operating margin forecast below analyst expectations, raising concerns about the profitability of new AI products.

• Kroger trims the top end of its full-year sales forecast as competition intensifies in the grocery market.

• Toronto-Dominion Bank, Bank of Montreal and Canadian Imperial Bank of Commerce all beat earnings estimates on strong capital markets performance.

• Novo Nordisk leaves room for further work on an oral Ozempic candidate for Alzheimer’s despite failed cognitive trials.

Overall, markets remain steady as investors consider labor data with expectations for next week’s Fed decision. Tech stocks are volatile, but the broader market sentiment is positive heading into year-end.

Also Read: Dow Jones Rises 0.2% as Tech & AI Stocks Lift Markets, Bitcoin Recovers & Bond Yields Stabilize Ahead of Fed