Stocks Flounder as Traders Bet on Rate Cut: Market Analysis for December 4th, 2025

STA Research
December 4th, 2025
Stocks Flounder as Traders Bet on Rate Cut: Market Analysis for December 4th, 2025
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Global Markets

Canadian Markets

Canada’s TSX rose on strength in the commodities sector, driven by higher oil and gold prices lifted energy and materials stocks, providing a solid foundation for broader market gains. The index also benefited from robust financial sector performance after both CIBC, National Bank of Canada and TD Bank reported quarterly earnings that surpassed analyst expectations. Their results highlighted continued resiliency in the Canadian banking system, helping bolster investor sentiment. Combined, the rally in resource prices and stronger-than-expected bank earnings helped propel the TSX to a fresh all-time high.

American Markets

U.S. stocks traded mixed as investors shifted into a more cautious stance, booking some profits following the market’s recent upswing. After a period of broad gains across major indices, traders showed signs of hesitation, reassessing valuations in light of  weakening labour market, as markets increasingly priced in the possibility of a Federal Reserve interest-rate cut.

While expectations for policy easing offered a supportive backdrop for stocks, particularly for rate-sensitive sectors, the uncertainty around the extent of a monetary policy shift and size of the Fed’s next move kept investors looking for more data to confirm trade direction. This left the major U.S. indices without a clear resolve, as gains in defensive and mega-cap names were offset by weakness in cyclical and growth-oriented sectors.

European Markets

European markets moved higher, led by industrials and automakers, as risk appetite improved after two sessions of muted trading. Investors digested mixed corporate earnings updates, which contributed to selective sector gains across the region.  In Ireland, the domestic economy grew 2.3% in the third quarter, keeping GDP at elevated levels despite global uncertainties, highlighting ongoing resilience in domestic demand.

UK stocks also moved higher, supported by gains in industrial, energy, and financial sectors. However, the UK construction sector contracted last month at its fastest pace since the pandemic. Data revealed that investors continued a trend of net stock selling for the sixth consecutive month in November, extending a record streak of cautious positioning amid economic and political uncertainty.

Corporate Stock News

Amazon.com Inc (AMZN:US): The company is planning to end its long-standing partnership with the U.S. Postal Service as it expands its nationwide delivery network. The online retailer has long been the Postal Service’s top customer, generating over $6 billion in annual revenue. USPS posted a $9.5 billion loss last year and has accumulated over $100 billion in losses since 2007.

Apple Inc (AAPL:US): Russia has blocked the iPhone maker’s FaceTime app as part of a clampdown on foreign tech platforms, citing alleged criminal misuse. Russian authorities launched a state-backed rival app called MAX, which critics say could be used for surveillance.

Bank of Montreal (BMO:CA): The bank reported a rise in fourth-quarter profit as its capital markets unit benefited from a dealmaking rebound and rallying equity markets. Profit at the unit more than doubled to C$521 million, while provision for credit losses dropped to C$755 million. Adjusted net income was C$2.51 billion, up from C$1.54 billion a year earlier.

Canadian Imperial Bank of Commerce (CM:CA): The bank posted a rise in fourth-quarter profit driven by strong capital markets performance. Capital markets net income jumped 58.4% to C$548 million, while net interest income rose to C$4.13 billion. Adjusted net income increased to C$2.19 billion from C$1.89 billion a year ago.

Chevron Corp (CVX:US): The company said its 2026 capital expenditure will range from $18 billion to $19 billion, focusing on U.S. production and a recently acquired oil stake in Guyana. Chevron plans to cut costs and operate more efficiently to increase returns through the end of the decade.

FedEx Corp (FDX:US): JPMorgan raised its target price to $285 from $274 after the company raised its quarter-two FY26 outlook, though near-term upside is seen as limited.

Gitlab Inc (GTLB:US): Macquarie cut its target price to $40 from $70, noting that despite a third-quarter revenue beat, investors may remain disappointed with the company’s FY26 growth trajectory.

Intel Corp (INTC:US): The chipmaker decided to retain its networking and communications unit (NEX) after reviewing strategic options. Intel has improved its cash position through investments from the U.S. government, SoftBank, and Nvidia.

Merck & Co Inc (MRK:US): Scotiabank raised its target price to $120 from $105, citing confidence that strong execution and product pipeline can offset losses from generic competition, supporting higher valuation.

Meta Platforms Inc (META:US): Brussels launched an antitrust investigation into Meta’s rollout of AI features in WhatsApp. The European Commission is reviewing the company’s policies on AI provider access to the platform amid concerns over generative AI use.

Packaging Corporation of America (PKG:US): The company plans to shut down a containerboard mill in Washington, resulting in $205 million in charges and the loss of approximately 200 jobs. Production reductions are expected, with enhancements at other mills to offset capacity.

Rio Tinto plc (RIO:US): CEO Simon Trott outlined plans to simplify the miner’s structure and focus on divestments and productivity. Core units include copper, aluminum, lithium, and iron ore, with assets like titanium and borates up for sale.

Salesforce Inc (CRM:US): The company raised its fiscal 2026 revenue and adjusted profit forecasts due to strong demand for its AI agent platform. Barclays raised the target price to $330 from $316 following the forecast revision.

Snowflake Inc (SNOW:US): The company forecasted fourth-quarter product revenue above analysts’ estimates but below investor expectations, sending shares down. It expects Q4 product revenue of $1.19 billion to $1.20 billion, representing 27% growth.

Tesla Inc (TSLA:US): UK car registrations for Tesla fell 19% in November amid declines in other European markets, reflecting intense competition from Chinese rivals.

Virtu Financial (VIRT:US): The company agreed to pay a $2.5 million fine to settle SEC accusations that its broker-dealer unit allowed employee access to confidential customer trading information. Virtu did not admit or deny wrongdoing.

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