Dow closes up more than 650 points, posting 3-day winning streak, as hopes for December rate cut grow
The Dow Jones Industrial Average closed higher on Tuesday following another winning session, with traders evaluating expectations of a Federal Reserve interest rate cut and the state of the artificial intelligence trade.
The blue-chip index advanced 664.18 points, or 1.43%, to close at 47,112.45. The S&P 500 gained 0.91% to settle at 6,765.88, while the Nasdaq Composite climbed 0.67% to finish at 23,025.59. That marks a turnaround from the losses seen earlier in the day. At session lows, the S&P 500 was down about 0.7%, while the Dow and tech-heavy Nasdaq dropped more than 100 points, or 0.2%, and more than 1%, espectively.
Investors continue to watch for any news that can affect the Fed’s upcoming monetary policy decision. Markets are pricing in an almost 83% chance of a quarter percentage point cut from the central bank in December, per the CME FedWatch tool.
Expectations received a bit of boost after Bloomberg reported that White House National Economic Council Director Kevin Hassett is being considered as the frontrunner to become the next Fed chair. Hassett is seen by investors as someone more likely to push the central bank toward a lower-rate regime favored by President Donald Trump. Treasury Secretary Scott Bessent told CNBC Tuesday that there’s a “very good chance” that Trump will “make an announcement before Christmas.”
The probability has soared since New York Fed President John Williams said on Friday that there was room to lower rates “in the near term.”
Source : Cnbc.com
