Nasdaq 100: US Stocks Lift on Friday’s Rate-Cut Hopes as Tech Stocks Remain Fragile

Stocks Rebound as Rate-Cut Hopes Give Traders Breathing Room

Wall Street finally caught a break Friday, with buyers stepping in after a bruising stretch that left traders on edge over AI valuations and Fed policy. A fresh hint from New York Fed President John Williams that a December rate cut is still in play flipped sentiment hard, pushing the major indexes solidly higher.

The Dow jumped 493 points, the S&P 500 added just under 1%, and the Nasdaq climbed almost the same. Still, all three closed the week lower, and the S&P 500 notched a nearly 2% weekly drop — its worst stretch since April.

Did Williams’ Comments Really Move the Market?

Pretty much. His remarks that policy is “modestly restrictive” were enough to kick rate-cut odds above 70%, a sharp leap from yesterday’s sub-40% pricing. Traders had been bracing for more hawkish pushback after a messy few days, so even a hint of relief was enough to spark broad buying.

It didn’t erase the anxiety that fueled Thursday’s wild 1,000-point Dow swing, but it gave traders something to lean on heading into a high-stakes December.

Is Tech Still the Problem Child?

Feels that way. Nvidia delivered another monster quarter, yet the stock fell anyway — traders simply aren’t willing to chase AI winners right now.

Nvidia ended the week down 5.5%. Microsoft and Amazon each lost about 7%. Oracle dropped 6.6% Thursday alone. Alphabet was the standout, up about 7% for the week thanks to enthusiasm around its Gemini 3 model and growing confidence in its in-house chips.

But the bigger theme is caution: more than half of global fund managers now call AI a bubble, and this week didn’t do much to change minds.

Where Did Traders Find Strength?

Healthcare stole the show. Eli Lilly briefly crossed the $1 trillion mark — the first healthcare name ever to do it — powered by monster demand for Mounjaro and Zepbound. Year-to-date, the stock is up roughly 36%.

Rate-sensitive sectors also came alive Friday. Home Depot, Starbucks, and McDonald’s all caught bids on the idea that cheaper money could revive consumer demand.

Retail had a moment too: Ross Stores ripped nearly 8% to a record high after a strong quarter, and Gap surged by the same margin on better-than-expected results.

Even with these bright spots, consumer sentiment remains weak, holding near 51 in late November.

What About Crypto’s Meltdown?

No relief there. Bitcoin sank to $82,000 — the lowest since April — and is staring at its worst month since 2022. Crypto-linked stocks followed lower, underscoring just how quickly risk appetite has dried up.

Bottom Line for Traders

This market is swinging on every headline. Rate-cut hopes helped Friday, but skepticism around AI is still heavy, and volatility remains elevated. With the December Fed meeting approaching, every speech and data print is going to matter. Buyers showed up today — but they’re choosing their spots carefully.

More Information in our Economic Calendar.