Microsoft was down nearly 2% after reports it cut AI-related sales quotas. The company pushed back on that claim, which helped the stock rebound from session lows, but not enough to flip the tech group. Nvidia was slightly lower, and Broadcom slipped more than 1%. Same with Micron — down more than 1% as the AI complex took a breather. Sellers pushed on that pocket, but buyers elsewhere stepped in to offset the pressure.
What’s Driving Sector Rotation Today
Energy leads by a wide margin, up 1.6%, with financials and consumer discretionary also showing some real bid. Industrials and health care are solidly green. Tech sits on the other side of the ledger, down 0.36%, and real estate and utilities are a little weaker as well. The takeaway: traders are rotating into cyclicals and areas more sensitive to a potential rate cut. It’s a bit of a “search for value” day, helped by the idea that slowing payrolls may finally give the Fed cover to ease.
How Much Weight Are Traders Putting on the Weak ADP Print
Plenty — but they’re spinning it bullish. ADP showed a 32,000 drop in private payrolls versus expectations for a 40,000 gain. Under normal conditions, that kind of miss would tighten risk appetite. But with the Fed meeting days away and rate-cut odds near 89%, the market’s treating the softness as confirmation.
Traders want a cut, and the weak print feeds that view. Still, there’s one counterweight: today’s slightly better-than-expected ISM services reading. That helps ease recession chatter enough to keep dip buyers active.
Which Stocks Are Actually Moving the Needle
Outside big tech, there’s real action. Marvell jumped more than 3% as investors warmed to its data-center growth outlook. American Eagle ran more than 14% after lifting its full-year forecast — strong holiday commentary always rings well this time of year.