Markets Hold Firm Amid Cooling Inflation and AI Momentum (December 1 – 5, 2025, Recap) 

The first week of December brought a mix of encouraging and cautious signals across global markets. US data showed continued resilience in the labor market and steady growth in the services sector, while manufacturing remained weak. Inflation indicators pointed to gradual cooling, and consumer sentiment improved slightly. Overseas, Australia’s economy expanded modestly, and Canada saw solid job gains. In corporate earnings, Salesforce, Snowflake, and HPE reported notable results, reflecting the growing influence of AI-driven business models. Commodity and equity markets ended the week mostly higher, with oil and tech stocks leading gains. 

Major Economic Indicators and Events in Review 

Monday, December 1 

17:00 – USA: ISM Manufacturing PMI (USD) 

In November, US manufacturing contracted for the ninth straight month as the ISM Manufacturing PMI fell to 48.2%. New orders and employment declined, while production grew slightly. Prices rose, inventories stayed low, and both exports and imports weakened, showing ongoing softness in factory activity. 

The EUR/USD edged up 0.09% on the day. 

Wednesday, December 3 

02:30 am – Australia: GDP q/q (AUD) 

In the September quarter of 2025, the economy grew 0.4%, up 2.1% from a year earlier. Growth was driven by stronger household spending and private investment, while trade and inventory reductions weighed on results as imports rose faster than exports. GDP per person was flat this quarter but up 0.4% over the year. 

The AUD/USD pair ticked up 0.55% on the day. 

09:30 am – Switzerland: CPI m/m (CHF) 

In November 2025, consumer prices fell 0.2% from the previous month, bringing the price index to 107.0. Compared to a year earlier, prices were unchanged, meaning inflation was flat at 0.0%. 

The USD/CHF pair decreased by 0.4% compared to the previous day. 

15:15 – USA: ADP Non-Farm Employment Change (USD) 

In November, private employers cut 32,000 jobs, showing that hiring has stalled in the second half of 2025. Job losses were led by small businesses and sectors like manufacturing, construction, and professional services. Pay growth also continued to slow as companies faced cautious consumers and an uncertain economy. 

The EUR/USD increased by 0.35% on the day. 

17:00 – USA: ISM Services PMI (USD) 

In November, the US services sector continued to grow, with the ISM Services PMI rising slightly to 52.6%, marking the ninth expansion month of 2025. Business activity and new orders stayed in positive territory, though hiring remained weak with the employment index still below 50%. Prices increased at a slower pace, and supplier deliveries slowed due to logistics and tariff issues. Overall, the report suggests steady but modest growth in the services sector amid ongoing economic challenges. 

The USD/JPY pair fell by 0.39% compared to the previous day. 

Thursday, December 4 

15:30 – USA: Unemployment Claims (USD) 

Jobless claims fell sharply last week, with 191,000 new filings, the lowest level since September 2022. The drop of 27,000 from the previous week signals a still-strong labor market. Continuing claims also edged lower, keeping the unemployment rate steady at 1.3%. 

The EUR/USD pair slipped 0.18% on the day. 

Friday, December 5 

15:30 – Canada: Employment Change (CAD) 

In November, employment rose by 54,000, mainly in part-time jobs, pushing the jobless rate down to 6.5%. Most gains came from younger workers and sectors like health care, food services, and natural resources, while retail jobs declined. Wages grew 3.6% from a year earlier to an average of $37 an hour. 

The USD/CAD pair fell by 0.94% compared to the previous day. 

17:00- USA: Core PCE Price Index m/m (USD) 

In September 2025, personal income rose 0.4%, while after-tax income and consumer spending each grew 0.3%. Most of the increase came from higher wages and investment income. The Core PCE Index, which excludes food and energy, rose 0.2% for the month and 2.8% from a year earlier, indicating moderate inflation. The personal saving rate held steady at 4.7%. 

The EUR/USD pair ticked lower 0.0009% on the day. 

17:00 – USA: Prelim UoM Consumer Sentiment (USD) 

Consumer sentiment improved slightly in early December, rising 2.3 points, mainly among younger consumers. People felt more optimistic about their personal finances and job prospects, though overall confidence remained muted due to high prices. Year-ahead inflation expectations fell to 4.1%, the lowest since January, while long-term expectations eased to 3.2%, showing growing but cautious optimism about inflation cooling. 

The USD/JPY pair increased by 0.12% compared to the previous day. 

Commodities 

1. Crude Oil  

1. Crude oil prices increased by 2.84% over the past week 

2. Brent Oil  

1. Brent was up 2.50% compared to the previous week 

3. Gold  

1. The precious metal Gold (XAUUSD) concluded the week on Friday with a 0.41% weekly decrease 

4. Silver  

1. XAGUSD increased by 3.49% from last week 

Stock Market 

1. S&P 500 increased by 0.43% 

2. DJIA was up 0.54% 

3. NASDAQ 100 increased by 1.13% 

Top Gainers 

1. Security Matters Public Limited Company (SMX) 443.87% 

2. Capricor Therapeutics, Inc. (CAPR) 402.62% 

3. Polyrizon Ltd. (PLRZ) 308.10% 

Top Losers 

1. Paranovus Entertainment Technology Ltd. (PAVS) -96.51% 

2. Smart Digital Group Limited (SDM) -86.60% 

3. Columbus Circle Capital Corp I (BRRW.U) -59.09% 

Company Earnings (December 1 – 5) 

Wednesday, December 3: CRM (Salesforce, Inc.) 

Wednesday, December 3: SNOW (Snowflake Inc.) 

Thursday, December 4: HPE (Hewlett Packard Enterprise Company) 

Salesforce reported record results for the third quarter of fiscal 2026, with revenue up 9% to $10.3 billion and operating cash flow up 17%. Strong demand for its AI products, Agentforce and Data 360, drove a 114% surge in annual recurring revenue to nearly $1.4 billion. The company raised its full-year revenue forecast to about $41.5 billion, citing continued momentum in AI-driven growth. 

CRM shares jumped 13% over the week. 

Snowflake reported strong third-quarter results for fiscal 2026, with revenue up 29% to $1.21 billion. Product revenue reached $1.16 billion, and remaining performance obligations rose 37% to $7.88 billion. The company now has 688 customers generating over $1 million each in annual product revenue, driven by growing demand for its AI-powered data solutions. 

SNOW shares fell by 8.94% the past week. 

HPE reported strong fourth-quarter results for fiscal 2025, with revenue up 14% to $9.7 billion — a record high. Networking sales surged 150%, boosting profits and cash flow. The company raised its fiscal 2026 earnings and cash flow outlook, citing solid demand, cost discipline, and growth in its AI and cloud businesses. 

HPE shares increased by 6.68% compared to the previous week. 

Conclusion 

The first week of December closed on a balanced note, with data showing steady consumer spending, cooling inflation, and a resilient labor market despite ongoing manufacturing weakness. Global growth trends remained modest, while strong corporate earnings from major tech firms underscored the accelerating shift toward AI-driven innovation. Markets reflected cautious optimism, with equities and commodities mostly higher, suggesting that investors remain confident in the broader economic outlook heading into year-end.