Wall Street indexes jump as rate cut bets increase but suffer losses for week
U.S. stocks ended sharply higher on Friday as traders boosted bets on an interest rate cut by the Federal Reserve next month, while all three of the major indexes posted losses for the week amid concerns over lofty technology valuations.
Shares of Nvidia briefly jumped in afternoon trading after sources familiar with the matter said the Trump administration is considering green-lighting sales of the company's H200 artificial intelligence chips to China.
New York Fed President John Williams, a voting member of the Federal Open Market Committee, said the central bank can still cut rates "in the near term" without putting its inflation goal at risk.
Traders now see a roughly 70% chance that the Fed will cut its main lending rate by 25 basis points in December, up from a near 37% chance seen earlier in the day, according to the CME FedWatch Tool.
According to preliminary data, the S&P 500 gained 64.89 points, or 0.99%, to end at 6,603.65 points, while the Nasdaq Composite gained 192.83 points, or 0.87%, to 22,273.08. The Dow Jones Industrial Average rose 505.03 points, or 1.08%, to 46,257.29.
Stocks have been volatile in the past two sessions, reflecting heightened investor anxiety over sky-high valuations in the technology sector and over what may happen at the December Fed meeting.
Source : Reuters.com
