Dow, S&P 500, Nasdaq rise as key ADP jobs data shows weakness

Nvidia (NVDA) released a report on Wednesday showing how its Blackwell AI systems can scale up artificial intelligence more efficiently, just as Big Tech’s data center buildout faces a massive power shortage.

Unlike previous models that use all their parameters to generate answers for AI tools — requiring enormous computing power — Nvidia noted that leading frontier AI models use what’s called a “Mixture of Experts” architecture that’s more efficient. Examples include OpenAI’s gpt-oss-120B model, DeepSeek’s R1, and Mistral AI’s Mistral Large 3.

In a so-called MoE model, many specialized “experts” are trained for different types of tasks. Instead of activating the entire model for every query, the model selects only the experts best suited to respond, reducing the computing power required for AI tasks while still improving performance.

But today’s MoE models have some limitations — they require a lot of memory and the use of multiple AI chips at once.

Nvidia said its GB200 NVL72 AI server racks — which include 72 Blackwell GPUs, or graphics processing units (aka AI chips), and are equipped with its coveted networking technology — resolve bottlenecks to scaling MoE systems in order to improve the energy efficiency and lower the cost of AI.

Nvidia said its Blackwell system is “transforming the economics of AI at scale in power- and cost-constrained data centers” because it “unlocks” the potential of MoE models that are “moving the industry toward a future where massive capability, efficiency and scale coexist.”

Natural gas futures (NG=F) continued a significant tear higher Wednesday, hitting a three-year high of $4.996 around 8 a.m. ET.

Prices have surged by more than 20% in the past month. If the commodity crosses the $5 mark, it will be the first time it has done so since December 2022.

Prices on natural gas have spent the past several months spiking as supply has shrunk and demand has grown substantially. Not only has a cold winter pushed prices up on expectations of incoming consumer demand, but the boom in data centers seeking immense loads of power has also begun to draw on natural gas.

Getting connected to the US power grid can take years, and renewables are largely unable at their current levels to meet the high demands of data centers. Natural gas infrastructure has filled that gap, acting as a backstop while Big Tech works out permanent solutions to its power shortfall.

The US has also spent 2025 increasing its exports of liquified natural gas (LNG) as global demand has risen, reducing the amount of gas available for storage and tightening the supply side.

Netflix (NFLX) shares dropped more than 6% Wednesday morning as the streaming giant attempted to preempt regulatory concerns that its proposed acquisition of Warner Bros Discovery’s (WBD) studios and streaming unit would raise prices for consumers.

The company argued that the acquisition would reduce streaming costs by bundling Netflix and HBO Max, Reuters reported.

That argument appeared to do the opposite of its intention, with Netflix shares reversing gains from the previous four trading sessions on Wednesday morning.

Adding pressure to the stock, Netflix co-founder Reed Hastings reported selling $40.7 million worth of shares on Dec. 1. Hastings also sold roughly $126 million worth of shares in the streaming giant in September and October, according to the latest SEC filing.

Big-name chip stocks sank in early trading after The Information reported that Microsoft (MSFT) is cutting sales quotas for some AI products.

AI chip giant Nvidia (NVDA) fell nearly 1%, while rival chipmaker Broadcom (AVGO) dropped 2.4% and leading contract chip manufacturer TSMC (TSM) sank nearly 1.9%. Micron (MU) — which supplies high-bandwidth memory to Nvidia for its AI systems — led the decline in chip stocks, falling 3.7%.

The Information’s report appeared to reignite investor skepticism over whether AI demand is large enough to sustain AI hardware stocks’ high valuations.

Microsoft (MSFT) stock fell nearly 2% in premarket trade on Wednesday after The Information reported the company had cut sales quotas for some AI products.

These full-year cuts come after some sales goals were also missed in the first half of the year.

This report sent the entire market lower, with Nasdaq futures falling as much as 0.5% before the open.

The market reaction on Wednesday shows this report being seen as another sign AI products might not yet be ready for the kind of mass customer adoption — whether that be consumers or enterprise customers — that hype around the AI trade depends on.

On the other hand, this softening of what were almost certainly aggressive targets also has a people management aspect, too, as a company doesn’t want to punish a salesforce on the leading edge of an industrywide change if those same salespeople will be needed in the future to continue leading these efforts as AI products improve.

But given the state of this market, where investors have an increasing number of doubts about the stability of the AI trade against the backdrop of a slowing white collar labor market, this news does not appear to be getting the benefit of the doubt.

Economic data: MBA mortgage applications (week ended Nov. 28) ADP employment change (November); Import price index (September); Export price index (September) Industrial production (September); S&P Global US services PMI (November), final reading; S&P Global US composite PMI (November); ISM services index (November)

Earnings: Salesforce (CRM), Royal Bank of Canada (RY), Snowflake (SNOW), Dollar Tree (DLTR), Five Below (FIVE), Macy’s (M), Uranium Energy Corp. (UEC), C3.ai (AI)

Here are some of the biggest stories you may have missed overnight and early this morning:

Macy’s posts surprise Q3 profit as overhaul resonates

Bets jump on rate cuts from Trump-led Fed

Apple’s leadership shift marks a ‘major reset’ in AI strategy

Anthropic plans an IPO as early as 2026, FT reports

Salesforce stock historically cheap as AI risk takes a toll

Bitcoin hits 2-week high in cautious crypto recovery

Women are just guessing how much they’ll need to retire

Fed data suggests central bank has stopped losing money

Macy’s (M) stock fell over 7% before the bell on Wednesday as its elevated sales guidance fell below last year’s annual sales numbers. But the retailer posted a surprise third quarter profit and its strongest comparable sales in three years. It also raised its financial guidance for the year.

The AP reports:

Read more here.

GitLab (GTLB) stock fell 8% before the bell on Wednesday after reporting a loss in its latest quarter despite posting double-digit sales.

Okta (OKTA) stock dropped 4% during premarket trading on Wednesday. The cybersecurity company forecast fourth-quarter revenue above Wall Street estimates on Tuesday.

Acadia Healthcare (ACHC) fell 30% before the bell on Wednesday. The company lowered its full-year outlook, citing higher-than-expected costs from patient-related litigation.