Wall Street Closes Mixed: Dollar General Soars as Fed Rate Cut Hopes Remain Solid

 

​US stock markets experienced a day of modest movement on December 4, 2025, with major indices closing mixed as investors digested corporate earnings and locked in expectations for the upcoming Federal Reserve meeting. Despite a slight dip in the Dow, broader market sentiment remained confident, driven by strong quarterly reports from key retailers and solidifying hopes for an imminent interest rate cut.

​Mixed Performance Across Key Indices

​While volatility was contained, the major indices diverged slightly in their closing numbers:

​The Nasdaq Composite led the slight advance, rising 0.2%, fueled by strength in the technology and growth sectors.

​The S&P 500 benchmark edged up 0.1%, maintaining its position near all-time record highs.

​The Dow Jones Industrial Average slipped 0.1% as some industrial and financial stocks weighed on the blue-chip index.

​The Russell 2000 index of small-cap stocks showed notable strength, outperforming its larger counterparts as investors shifted focus back to smaller, domestically-focused companies.

​Earnings Reports Drive Stock Shakers

​Corporate earnings were the primary catalysts for some of the day's biggest stock movements, demonstrating the current market's focus on company-specific performance:

​Dollar General (DG) Surges: Discount retailer Dollar General saw its shares jump by nearly 14% after reporting quarterly earnings that significantly beat analyst expectations and raising its full-year guidance. This surge highlighted consumer demand for value amidst ongoing economic pressures.

​Kroger (KR) Slips: Conversely, grocery giant Kroger saw its stock fall by approximately 4.6% after its revenue figures disappointed investors, suggesting mixed performance within the consumer staples sector.

​Tech Sector Moves: Shares of workflow automation software firm UiPath (PATH) soared by 24% after reporting strong results, while data cloud company Snowflake (SNOW) dropped 11% following its earnings release.

​Furthermore, Meta Platforms (META) added to its gains after reports surfaced that the company is considering significant cuts to its metaverse unit budget to sharpen its focus on Artificial Intelligence (AI), a move viewed positively by investors.

​Rate Cut Expectations Solidify Ahead of Fed Meeting

​Underpinning the market's stability were strong expectations for a monetary policy shift. Despite a surprise drop in initial jobless claims to a three-year low—indicating a resilient labor market—investors remain highly confident that the Federal Reserve will implement a 25-basis-point rate cut at its upcoming policy meeting. Market futures priced the probability of a cut at around 87-89%, suggesting that economic data (like the upcoming PCE inflation report) would have to deliver a major shock to derail the current dovish consensus.

​The continued focus on a potential Fed cut, coupled with resilient corporate earnings, is helping major indices hold near their record closing levels, maintaining a sense of cautious optimism on Wall Street.