U.S. Stocks Close Tuesday Higher
The Dow Jones Industrial Average rallied 1.43%, advancing 664.18 points to settle at 47,112.45 by closing bell. The tech-heavy Nasdaq climbed 0.67%, adding 153.59 points to reach 23,025.59, while the benchmark S&P 500 rose 0.91%, gaining 60.76 points to finish at 6,765.88.
Market anxiety indicators showed notable improvement. The Volatility Index (VIX), commonly referred to as the "fear index," plummeted 9.55% to 18.56, reflecting reduced investor concern about near-term market turbulence.
Growing market sentiment that the Federal Reserve will proceed with additional interest rate reductions in December propelled equities upward throughout the session. Data from CME FedWatch reveals investors currently price in an 85% probability of a December rate cut, signaling overwhelming market expectations for continued monetary accommodation.
Financial analysts cautioned that despite mounting rate cut speculation, potential divisions among Fed policymakers could emerge at next month's monetary policy deliberation, introducing uncertainty into market forecasts.
Treasury Secretary Scott Bessent disclosed to media on Tuesday that President Donald Trump is expected to unveil his selection for the next US Federal Reserve chairman before Christmas arrives. US media outlets have identified White House National Economic Council Director Kevin Hassett as among the leading contenders under consideration for the central bank's top leadership position.
Economic data released Tuesday painted a mixed picture of American economic health. Producer inflation matched economist projections for September, with the Producer Price Index (PPI) climbing 0.3% on a monthly basis and 2.7% year-over-year, indicating persistent inflationary pressures at the wholesale level.
Consumer sentiment deteriorated sharply according to The Conference Board's US Consumer Confidence Index, which tumbled 6.8 points to 88.7 in November, falling short of analyst expectations and marking the indicator's weakest reading since April. The decline suggests growing household concerns about economic conditions.
Employment data from market research firm ADP showed US private sector employers eliminated an average of 13,500 positions weekly during the four-week period ending November 8, according to preliminary estimates released Tuesday. Meanwhile, retail trade activity in the US expanded just 0.2% month-on-month in September, decelerating from August's 0.6% increase and disappointing market forecasts.
Technology sector developments captured investor attention. Nvidia issued a corporate statement expressing satisfaction with Google's artificial intelligence achievements and confirming its commitment to continued supply partnerships with the tech giant. The announcement followed industry reports that Meta Platforms is evaluating Google's tensor-processing units for artificial intelligence computational workloads. Nvidia's statement emphasized that the company maintains "a generation ahead of the industry" technological advantage.
Alphabet shares appreciated 1.6% on the news. Other major US technology corporations posted solid gains: Meta's stock surged 3.8%, Broadcom's climbed 1.9%, Amazon's advanced 1.5%, Microsoft's edged up 0.6%, while Apple and Tesla each gained 0.4%.
Retail sector earnings commanded significant market focus. Department store chain Kohl's shares skyrocketed nearly 43% after delivering quarterly profits substantially exceeding Wall Street projections, demonstrating resilient consumer spending patterns despite economic headwinds.
Electronics retailer Best Buy shares jumped 5.3% following the release of financial results that surpassed analyst expectations, further reinforcing optimism about holiday shopping season momentum and consumer discretionary spending strength heading into year-end.
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