U.S. stocks rose on Tuesday, recovering some ground lost in the previous session as strength in bitcoin and technology big names helped lift sentiment.
The Dow Jones industrial average added 185 points, or 0.39%, to close at 47,474. The S&P 500 rose 0.25% to 6,829, and the Nasdaq Composite ended up 0.59% at 23,413.
Bitcoin climbed nearly 7 percent, reversing a fraction of Monday’s losses. Tech stocks tied to AI trading also supported the broader market. NVIDIA rose nearly 1%, while Credo Technology surged 10% to an all-time high after reporting better-than-expected earnings.
It was a kitty session overall, with both the S&P 500 and Dow slipping into negative territory and the Nasdaq hovering near flat before rallying higher. Major indexes started Saturday in the red, ending a five-day winning streak on Monday as worries about stubborn inflation, higher prices and questions over AI-related spending weighed on sentiment.
Despite November producing mixed results for equities, investors are hoping for catalysts that could support a year-end rally.
Rate cut expectations rise ahead of next week’s Fed meeting
Traders are increasingly optimistic that the Federal Reserve will cut rates at next week’s policy meeting. Current prices imply an 89 percent chance of a decline, sharply higher than mid-November expectations.
Market participants are also focusing on improving earnings estimates for the fourth quarter and 2026, as well as the prospect of accelerating economic growth later next year. Historical patterns can also offer comfort: The S&P 500 has averaged more than 1 percent gain in December since 1950, making it the benchmark’s third-strongest month.
Local Outlook
Australian shares are poised higher, with SPI 200 futures up 0.2 percent to 8,607. Australia’s GDP data will headline today’s economic calendar due at 11.30am today. Bloomberg economists expect quarterly growth of 0.7%, likely the strongest reading in three years, while Westpac forecasts business investment at its fastest pace since early 2012.
Westech Global has its investor day today, and Eurozone producer price data is due to be released at 9pm.
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