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The Dow Jones Industrial Average rose on Tuesday following a winning session the day before, with traders evaluating expectations of a Federal Reserve interest rate cut and the state of the artificial intelligence trade.
The 30-stock index ballooned 663.87 points, or 1.4%, to 47,112.14.
The S&P 500 index recovered 60.76 points to 6,765.88.
The NASDAQ sprang up 153.59 points to 23,025.99.
The stock market will be closed on Thursday for Thanksgiving Day, and it shuts down early at 1 p.m. ET on Friday.
Investors continue to watch for any news that can affect the Federal Reserve’s upcoming monetary policy decision. Markets are pricing in about an 83% chance of a quarter percentage point cut from the Fed in December,
Alphabet was a winner of Tuesday’s session, trading up around 1% and scoring a new record high, after The Information reported, citing sources, that Meta Platforms was considering spending billions of dollars on the Google parent’s AI chips.
Investors have rallied behind both companies, which are related through their high-performance, application-specific chips, or ASICs, businesses.
Between Meta reportedly considering Alphabet chip purchases and the latter’s announcement just last week of its upgraded AI model known as Gemini 3, the CIO is confident that the broader economy is going to benefit from AI. He noted that compute costs potentially going down from here could make it a lot easier for non-tech companies to “take advantage of the productivity gains and drive earnings growth.”
However, with Nvidia down about 3% following the report, investors could be taking it as a sign that the company’s dominance in the AI chips space might be under threat.
Prices for the 10-year Treasury gained ground, lowering yields to 4% from Monday’s 4.03%. Treasury prices and yields move in opposite directions.
Oil prices slid 89 cents to $57.95 U.S. a barrel.
Gold prices brightened $35.50 to $4,129.70 U.S. an ounce.
