05.12.2025 – Wall Street Movers: Salesforce and Meta Gain; Snowflake, Kroger Plunge on Earnings

The Euro edged lower on Thursday as markets absorbed the latest U.S. labor figures and prepared for the release of the Federal Reserve’s preferred inflation metric, the Core PCE Price Index.

The week’s economic narrative remained focused on the Federal Reserve’s upcoming policy decision on December 10. A sharper-than-expected decline in Initial Jobless Claims for the week ending November 29 signaled continued resilience in the U.S. labor market, offering support to the Dollar.

However, Challenger job-cut data painted a softer picture, showing more than 70,000 layoffs in November—the highest for that month since 2022.

Despite the mixed signals, traders now assign roughly an 85% probability to a Fed rate cut next week. That outlook could shift depending on Friday’s Core PCE report; a reading above 3% would likely dampen the case for immediate easing.

On the European side, the Euro found some backing from the European Central Bank. With interest rates holding near 2%, ECB President Christine Lagarde reiterated on Wednesday that inflation is expected to remain close to the 2% target in the coming months, reinforcing the view that the bank’s easing cycle has likely paused.

Recent Eurozone figures were moderately encouraging. October retail sales surpassed expectations, and Construction PMI readings across the bloc—while still in contraction—showed signs of improvement.

Bitcoin traded slightly lower on Thursday but preserved most of its gains from a strong mid-week rebound, as investors focused on expectations of a potential U.S. Federal Reserve rate cut and monitored upcoming inflation figures.

Earlier in the week, Bitcoin briefly slid toward $84,000—its lowest level in nearly a month—after a bout of risk aversion triggered widespread leveraged liquidations across digital asset markets.

The rebound was partly driven by growing confidence that the Federal Reserve could lower interest rates at next week’s policy meeting. U.S. jobless claims released on Thursday showed weekly filings dropping to their lowest level in more than three years, reinforcing expectations that labour market conditions are cooling enough to allow the Fed to begin easing.

Lower borrowing costs typically benefit risk-sensitive assets, including cryptocurrencies. Still, traders remained cautious ahead of Friday’s U.S. Personal Consumption Expenditures (PCE) inflation report—the Fed’s preferred measure of underlying price pressures. A weaker-than-expected reading could bolster the case for a near-term rate cut.

In a notable development for traditional finance, Bank of America announced Thursday that it will allow its wealth advisers to recommend cryptocurrency exposure to clients beginning in January 2026. The shift marks a significant policy change for one of Wall Street’s largest banks.

Oil prices were little changed in Asian trading on Friday, holding on to gains from the previous session as stalled diplomatic progress in the Ukraine conflict and firm expectations of a U.S. Federal Reserve rate cut continued to underpin sentiment.

Crude prices found support after U.S.-Russia discussions earlier this week failed to yield any immediate movement toward a ceasefire in Ukraine. The stalemate dampened hopes that sanctions on Russian oil exports might be eased soon, reinforcing supply concerns that continue to add a risk premium to the market.

Broader market sentiment was also lifted by continued expectations that the Federal Reserve may deliver a rate cut at next week’s policy meeting.

This week’s U.S. labor data added to that view. Initial jobless claims fell sharply to 191,000, the lowest reading since September 2022, although economists cautioned that holiday distortions may have influenced the numbers.

Attention now turns to Friday’s release of the U.S. Personal Consumption Expenditures (PCE) Price Index—the Fed’s preferred inflation gauge. A weaker-than-expected reading could further strengthen the case for an imminent rate cut.

U.S. equities were mostly steady on Thursday as investors looked ahead to a closely watched inflation reading that could influence the Federal Reserve’s policy decision next week.

The strong labor data landed just ahead of Friday’s release of the Personal Consumption Expenditures (PCE) Price Index—the Fed’s preferred inflation measure—which is expected to be a key factor in shaping next week’s policy discussion.

Speculation over future Fed leadership also contributed to a more dovish tone in markets. Reports that the Trump administration abruptly cancelled interviews with other potential candidates have increased expectations that Kevin Hassett—seen as more dovish than current Chair Jerome Powell—could assume the role in 2026.

Salesforce shares gained after the company raised its fiscal 2026 revenue and adjusted income outlook. The improved guidance was supported by strong demand expectations for its AI-enhanced agent platform, particularly among large enterprise clients.

Five Below stock advanced after the discount retailer posted third-quarter earnings that beat analyst forecasts, driven by solid comparable sales growth and continued store expansion.

Snowflake shares fell sharply after the cloud data firm issued a slightly weaker-than-expected product revenue outlook for the January quarter.

Meta Platforms gained around 3% after reports indicated the company is preparing budget cuts of up to 30% for its Metaverse initiative. The development came as the European Commission opened a new antitrust investigation into Meta’s rollout of AI features on WhatsApp, underscoring rising regulatory pressure on Big Tech.