ION expands ETF trading capabilities with Tradeweb integration
Investing.com - The S&P 500 closed higher Tuesday, as bullish bets on tech resumed amid rising expectations for a Federal Reserve rate cut.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average traded 185 points, or 0.4%, higher, the S&P 500 index gained 0.2%, and the NASDAQ Composite rose 0.6%.
Fed rate cut bets in focus
The latest Institute for Supply Management data, showing more manufacturing weakness, has further strengthened expectations of a shift in Fed policy next week, with interest-rate futures suggesting investors now assign an 86% probability to a 25-basis-point cut at the Dec. 9–10 meeting.
The move is being driven by a combination of cooling data, easing inflation pressures, and recent remarks from senior Fed officials that hinted at the possibility of lower rates starting sooner than previously anticipated.
The prospect of new leadership at the Fed is adding another layer of uncertainty, with the White House considering several candidates to succeed Powell, whose term expires next year.
BofA Global Research said on Monday it now expects the U.S. Federal Reserve to cut interest rates by 25 basis points at its December meeting, having previously expected borrowing costs to remain unchanged. It now sees two additional quarter-point cuts in 2026, in June and July, bringing the terminal rate to 3.00%-3.25%.
"Our forecast of additional cuts next year is due to the change in leadership, not our read on the economy," analysts at BofA said in a note.
White House economic adviser Kevin Hassett has emerged as the frontrunner to be the next U.S. Federal Reserve chair, according to reports last week.
Marvell to lead limited earnings parade; Boeing jumps
On a relatively light earnings calendar, U.S. chipmaker Marvell Technology (NASDAQ:MRVL) will likely be the headliner after the close.
MongoDB (NASDAQ:MDB) jumped more than 22% after lifted its guidance for the full year following Q3 results that topped Wall Street estimates.
The semiconductor group has been a major competitor of larger rival Broadcom (NASDAQ:AVGO) as a provider of custom and networking chips. On Monday, media reports said it is in advanced discussion to acquire startup Celestial AI in a potential cash-and-stock deal worth multiple billions of dollars.
Additionally, Dell Technologies (NYSE:DELL) stock rose Tuesday after President Donald Trump praised the Dell family following their massive philanthropic donation.
Michael and Susan Dell announced they will give $250 each to 25 million American children under 10 years old to jumpstart investment accounts for their futures. The $6.25 billion gift extends the "Invest America" initiative created earlier this year as part of President Trump’s One Big Beautiful Bill Act, which automatically seeds accounts with $1,000 for children born between 2025 and 2028.
In other news, Boeing Co (NYSE:BA) jumped 10% after the company guided free cash flow to turn positive for 2026 and the aircraft maker also won a contract from the U.S. Navy worth $104.4M to repair displays in aircrafts.
Bitcoin rebounds from slump to help steady crypto-related stocks
Bitcoin (BitfinexUSD) rose more than 7% to climb back above $90K on dip buyers bought the recent selloff, helping ease negative sentiment on crypto-related stocks.
Strategy Inc (NASDAQ:MSTR), Coinbase Global Inc (NASDAQ:COIN), Marathon Petroleum Corp (F:MPN) were sharply higher.
Get more stock picks by Wall Street analysts by upgrading to InvestingPro - get 60% off today
Peter Nurse, Ayushman Ojha contributed to this article