The stocks surged on Tuesday, with bitcoin reaching a record high of $90,000 and tech stocks gaining momentum, with traders regaining some of the lost ground in the last session.
However, the Dow Jones Industrial Average gained 185.13 points, or 0.39 percent, to end the day at 47,474.46. The S&P 500 increased 0.25 percent to end at 6,829.37; therefore, the Nasdaq Composite advanced 0.59 percent to close at 23,413.67.
Bitcoin was up approximately 7 percent on Tuesday, and it has regained some of its losses from the day before. The tech players affiliated with the artificial intelligence trade also backed the larger market.
AI chip star Nvidia rose nearly 1 percent, and AI infrastructure leader Credo Technology surged 10 percent and hit an all-time high on the strength of stronger-than-expected earnings.
In order to be certain, stocks have had a topsy-turvy session. The S&P 500 and Dow in a turnover of one day went to the negative side, and the Nasdaq closed at the flatline before moving back higher.
The U.S. major indexes started the week at a loss and ended their five-day winning streaks on Monday. Risk-off mood has also exerted pressure on the bull market over the last few weeks, with concerns about ongoing inflation, high valuations, and returns on AI expenditures taking a toll on investors.
Despite the mixed month of November as far as stocks are concerned, investors are looking at catalysts that may result in a year-end rally. Therefore, traders now hold optimism that the Federal Reserve will lower its target rate at the end of next week’s policy meeting.
According to the CME FedWatch tool, markets are betting an almost 89 percent probability of a reduction at the following session, which is significantly greater than the likelihood of mid-November.
Global Equity Strategist at Wells Fargo Investment Institute, Doug Beath, said that “Markets appear to have moved away from uncertainties surrounding Fed policy and the Dec. 10 FOMC and focusing instead on better-than-expected earnings projections for the fourth quarter and calendar year 2026, in addition to looking beyond the economic soft patch we’re currently experiencing to growth accelerating later next year. Seasonality also favors stocks in December, particularly after a weak November.”
The Stock Trader’s Almanac reported that the S&P 500 has an average growth of over 1 percent in December, which remains the third-best month of the year for the benchmark in records since 1950.
