US stocks closed higher on December 4, 2025, driven by expectations of Federal Reserve rate cuts. The Dow Jones Industrial Average led the gains, buoyed by softer labor data and mixed services sector readings that lowered Treasury yields. The Russell 2000 index surged 1.91%. Microsoft shares fell 2.5% amid reports of slower enterprise adoption of AI technologies, raising concerns about future demand. In contrast, UnitedHealth, Goldman Sachs, and McDonald’s emerged as top performers within the Dow, contributing to the index's positive momentum.