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10:43Now PlayingComprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.
US stocks ended Tuesday’s session higher, with traders reloading wagers on an interest-rate cut next month while the latest AI advances drove Big Tech valuations.
The S&P 500 rose 0.9% after swinging between modest gains and losses earlier. The Nasdaq 100, after declining as much as 1.3%, wrapped up the day 0.6% higher. Economic data out of the US on Tuesday further cemented bets that the Federal Reserve will lower rates in December. That optimism had pushed stocks higher even on Monday.
The US 10-year Treasury yield fell, lingering around 4% after White House National Economic Council Director Kevin Hassett emerged as the front-runner to serve as the next Fed chair. The dollar remained lower. Bitcoin dropped below $88,000.
WATCH: Northern Trust CIO Anwiti Bahuguna says lower Fed rates are a concern in an environment where inflation is still above target and the US economy is likely to accelerate.
Among individual stock movers, Alphabet Inc. came off session highs that had driven the search giant closer to a $4 trillion valuation, after The Information reported that Meta Platforms Inc. is in talks to use Google’s AI chips. Shares of Nvidia Corp., Advanced Micro Devices Inc. and Oracle Corp. remained lower.
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