Nasdaq Index: Nvidia steadies as US stocks climb on renewed Fed rate-cut forecast

Wall Street Rises as Traders Boost December Rate-Cut Expectations

U.S. equities moved higher on Friday as traders increased bets that the Federal Reserve could lower interest rates in December, helping markets recover from recent volatility tied to stretched technology valuations. The Dow, S&P 500, and Nasdaq all advanced, though each remains on track for roughly a 2% weekly decline following two sessions of sharp swings.

Fed commentary played a central role in the market tone. New York Fed President John Williams said the central bank could cut rates “in the near term” without jeopardizing inflation goals, pushing rate-cut odds above 70% according to the CME FedWatch Tool. That compares with roughly 37% earlier in the day.

Boston Fed President Susan Collins offered a more cautious stance, saying policy is “in the right place,” creating a split in messaging that could fuel further volatility into the December meeting.

How Are Indexes Responding to Shifting Rate Expectations

By late afternoon, the Dow rose 566 points to 46,318.70, the S&P 500 gained 0.92% to 6,598.92, and the Nasdaq climbed 0.71% to 22,235.02.

Nvidia steadied after Thursday’s volatile reaction to its third-quarter results, where shares swung 5% higher before closing more than 3% lower. Alphabet led megacap strength with a 3% advance.

Ten of the S&P 500’s eleven sectors traded higher, led by health care, materials, consumer discretionary, and industrials. Technology was the lone sector in the red, down 0.04% as traders reassessed stretched valuations after the week’s heavy selling.

Which Stocks Are Leading Today’s Market Action

Ross Stores topped the S&P 500, up more than 7%. Homebuilders D.R. Horton and Lennar also posted strong gains above 5%, benefiting from expectations that lower rates could support housing demand.

On the corporate front, Intuit gained 5.6% after projecting second-quarter revenue above expectations. Eli Lilly added 1.5%, becoming the first drugmaker to reach a $1 trillion market valuation.

Other notable performers included Gartner, Old Dominion Freight Line, Align Technology, and Molina Healthcare.

The weakest names included Oracle, down more than 6%, followed by Seagate, Vistra, Western Digital, and Constellation Energy. Several high-valuation technology names such as Arista Networks, CrowdStrike, Advanced Micro Devices, and Broadcom also traded lower.

What Are Traders Watching in the Broader Economic Outlook

The Bureau of Labor Statistics canceled the October consumer price report, removing a key data point ahead of the December Fed meeting. A November business report now becomes a major focus.

What’s the Short-Term Market Forecast

With rate-cut odds rising and sector breadth improving, sentiment leans cautiously bullish into the close. However, diverging Fed commentary and elevated valuations in key growth names suggest markets could remain sensitive to incoming economic data as traders position ahead of the December policy decision.

More Information in our Economic Calendar.