US stocks rose on Tuesday, recovering some of the ground lost in the previous session as strength in bitcoin and major technology 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 advanced 0.59% to finish at 23,413.
Bitcoin climbed around 7%, reversing part of Monday’s slump. Tech stocks tied to the AI trade also supported the broader market. Nvidia gained almost 1%, while Credo Technology surged 10% to an all-time high after reporting better-than-expected earnings.
It was a choppy session overall, with both the S&P 500 and Dow briefly slipping into negative territory and the Nasdaq hovering near flat before turning higher. The major indexes had started the week in the red, ending five-day winning streaks on Monday as worries around stubborn inflation, lofty valuations 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 pricing implies an 89% chance of a reduction, sharply higher than mid-November expectations.
Market participants are focusing on improving earnings projections for the fourth quarter and into 2026, as well as the potential for economic growth to accelerate later next year. Historical patterns may also offer comfort: the S&P 500 has averaged a gain of more than 1% in December since 1950, making it the benchmark’s third-strongest month.
Local outlook
Australian shares are poised to edge higher, with SPI200 futures up 0.2% to 8607. Australia’s GDP figures headline today’s economic calendar, due at 11.30am. Bloomberg economists expect 0.7% quarterly growth, potentially the strongest reading in three years, while Westpac forecasts business investment at its fastest pace since early 2012.
WiseTech Global holds its investor day today, and Eurozone producer price data is scheduled for release at 9pm.
