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Daily U.S. Market Update

Michael Reinking, CFA - Senior Market Strategist

December, 3 2025 at 2:30 p.m. EST

Futures were trading modestly higher overnight after a generally solid round of tech and retail earnings but there was a quick selloff just ahead of the open after The Information ran story that Microsoft was lowering internal AI software sales quotas. Markets have been on edge related to AI spending/adoption and this caused S&P futures to drop a quick 50pts, turning slightly negative. The tech losses were kept in check helped by strong earnings from Marvell Technologies and a positive pre-announcement from Microchip Technologies overnight. About an hour after the open Microsoft refuted that story further helping the tape with equities back at pre-market levels and approaching Friday’s highs.

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