US stocks close higher, Dow Jones adds 400 points

US stocks closed higher on Dec. 3 as investors focused on expectations of a Federal Reserve interest rate cut, offsetting pressure from weak technology-sector performance and new signs of softness in the labor market.

At the close, the Dow Jones Industrial Average rose 0.86%, or 408 points, to 47,882. The broader S&P 500 gained 0.30%, or 20 points, to 6,849, while the Nasdaq Composite increased 0.17%, or 40 points, to 23,454.

Microsoft shares fell 2.50% to $477.73 amid reports that several of the company’s divisions had lowered sales growth targets for some artificial intelligence products, which weighed on other technology stocks.

In Europe, the Stoxx Europe 600 edged up 0.10% to 576.22 at the close. The UK’s FTSE 100 declined 0.10% to 9,692, Germany’s DAX ended flat at 23,693, while France’s CAC 40 rose 0.16% to 8,087.

In Japan, the Nikkei 225 gained 1.15% to 49,864, while the broader Topix slipped 0.20% to 3,334.

On oil, Brent crude futures for February delivery rose 0.35%, or 22 cents, to $62.67 per barrel. Nymex US crude futures for January delivery gained 0.53%, or 31 cents, to $58.95 per barrel.

As for gold, February gold futures increased 0.28%, or $11.7, to $4,232.50 per ounce at settlement.

ADP’s monthly report showed that the US private sector lost 32,000 jobs in November, against expectations of 40,000 job additions, providing a new sign of weakness in the labor market that strengthens the likelihood of a Federal Reserve rate cut at next week’s meeting.