Market Update: Nasdaq Up, Dow Down
Traders were busy on the New York Stock Exchange floor after the opening bell on December 5, 2025.
The Nasdaq Composite saw a slight increase of 0.3%, capturing the attention of investors as they awaited the Federal Reserve meeting scheduled for later this week. In contrast, the S&P 500 remained almost unchanged, while the Dow Jones Industrial Average lagged behind, dropping 168 points, or 0.4%.
In other news, Broadcom’s stock rose by 3% following a report suggesting that Microsoft is in talks about custom chip designs with various manufacturers. Broadcom’s stock has increased by 28% recently, which is significant. Meanwhile, IBM announced plans to acquire a company for $11 billion, with the deal expected to close by mid-2026. Oracle also saw its shares rise by 2%, as investors grew more optimistic ahead of its quarterly results on Wednesday.
This positive movement on Monday follows a second consecutive week of gains for the major indexes. The Dow and Nasdaq Composite both increased by 0.5% and 0.9%, respectively, over the past week. The S&P 500 index climbed about 0.3%, although it did experience a 0.7% drop from its intraday high. Notably, both the S&P 500 and Nasdaq marked their fourth straight winning day on Friday, with the Dow recovering in three out of the last four sessions.
The uptick in stocks on Friday can be attributed to a weaker-than-expected September core personal consumption expenditure price index, one of the last significant economic indicators before this week’s Federal Reserve policy meeting.
Traders are becoming increasingly optimistic that the Fed may lower interest rates during its final Federal Open Market Committee meeting of the year. Current futures pricing suggests about a 90% chance of a rate cut, a notable increase from less than 67% just last month.
Eric Friedman, the chief investment officer for wealth management at Northern Trust, expressed in a letter to clients that the market’s focus is rightly on potential changes in interest rates. He mentioned the importance of understanding the future outlook of Federal Reserve policymakers and the evolving landscape of Fed leadership.
