Market Recap - Tuesday, December 2, 2025
AI Optimism Lifts Stocks Amid Consumer Crosscurrents
Stocks rebounded today, though gains cooled into the close. The Dow rose 0.39%, S&P 500 added 0.25%, and the Nasdaq led with a 0.59% gain, while small caps (Russell 2000) slipped 0.17%. After Monday’s pullback snapped a five-day win streak, investor sentiment improved on strong showings from big tech, AI infrastructure names, and a renewed bounce in crypto.
Buying was broad across semiconductors, software, banks, travel, trucking, and industrials. However, energy, food, and consumer staples underperformed. Crypto-exposed stocks rebounded as Bitcoin futures surged 6.5%, clawing back losses from Monday’s drop.
Sector & Stock Highlights
Leaders:
Semis & AI Enablers: Strong updates from Nvidia, AMD, and Marvell lifted sentiment. Credo Technology (+10.2%) rallied on strong guidance and AI-driven demand.
Big Tech & AI: Amazon (+1.6%) announced new cost-effective Trainium3 AI chips; Nvidia emphasized growing Blackwell/Rubin pipeline. Intel (+8.7%) rose on reports of a new chip supply deal with Apple.
Aerospace: Boeing (+10.1%) soared after projecting free cash flow growth by 2026 and higher plane deliveries.
Software: MongoDB (+22.2%) beat expectations, raised guidance, and highlighted AI as a future growth engine.
Consumer & Retail: United Natural Foods (+4.7%) gained on margin improvement and natural food segment strength.
Laggards:
Symbotic (-21.5%) downgraded on valuation after a strong YTD rally.
Signet (-6.8%) slid despite solid Q3 results; guidance underwhelmed.
Block (-6.6%) flagged some Q4 deceleration.
Procter & Gamble (-1.1%) said U.S. sales fell in October due to SNAP benefit cut and sees continued weakness in November.
AI & Tech Updates
Nvidia reaffirmed strong pipeline visibility, with more upside possible from OpenAI deals.
AMD & HPE expanded their AI infrastructure collaboration.
Marvell confirmed a $5B acquisition of Celestial AI to boost its custom chip capabilities.
Apple reportedly revamping its internal AI team and may soon source advanced chips from Intel.
Consumer Spending & Retail Check-In
Mixed signals from consumer names:
P&G and Walmart flagged weaker low-income spending, stretched wallets, and a shift toward essentials.
Mastercard offered a more upbeat take, citing resilient holiday spending backed by wage growth and stable employment.
Holiday sales off to a strong start:
Black Friday spending up +4.1% (Mastercard), online +9.1% (Adobe)
Cyber Monday sales expected to reach $14.2B, a record
NRF forecasts total holiday sales to hit $1.02 trillion
Trending categories: jewelry, cosmetics, electronics, and gaming. AI-powered tools and social media are driving online engagement and conversions.
Macro & Market Drivers
No major economic data today, but rates steadied after Monday’s surge on Japan rate hike fears and U.S. supply.
Fed enters quiet period ahead of next week’s FOMC meeting. Rate cut odds hold near 87%.
Gold dropped 1.3% and oil fell 1.2%. Dollar edged higher.
Global markets look mixed heading into Wednesday.
Here’s Our Take
Today’s action was a tale of resilience beneath the surface. While index gains were modest, investor appetite returned for AI-driven tech, semiconductors, and select consumer names. A strong rebound in crypto and upbeat software earnings helped restore risk sentiment. At the same time, consumer signals remain mixed - retail giants are flagging weaker spending among lower-income households, even as overall holiday sales remain solid.
We believe the market is in digestion mode - sorting through economic crosscurrents, AI enthusiasm, and rate expectations. For now, stabilization in bond yields and strong tech fundamentals offer support. But all eyes are on upcoming labor and inflation data later this week, which will shape expectations heading into the final Fed meeting of the year. Stay tuned.
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