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Stocks Extend Rally as Markets Price In December Fed Cut

Traders now see roughly 85% odds of a rate reduction next month following dovish Federal Reserve comments.

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 25, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
People cross a street near an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 25, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 10, 2025.  REUTERS/Brendan McDermid/File Photo
A graph of the German share price index DAX is displayed at the stock exchange in Frankfurt, Germany, November 25, 2025. REUTERS/Staff

Overview

  • The Dow jumped 664 points, the S&P 500 rose 0.9% and the Nasdaq gained 0.7% on Tuesday, with futures and early Wednesday trading pointing to a fourth straight advance.
  • U.S. 10-year Treasury yields hovered near 4% after a brief dip below that level, helping ease pressure on equities as borrowing costs moderated.
  • New readings showed initial jobless claims fell to 216,000 and core capital goods orders rose 0.5% in September, while Chicago PMI dropped to 36.3, keeping attention on the Fed’s Beige Book and other delayed reports.
  • Tech remained a key driver: Alphabet notched a record close and Nvidia rebounded, as reports of Meta considering Google’s TPU chips weighed on some semiconductor shares.
  • Global markets echoed Wall Street’s upswing, with Japan and South Korea rallying and India’s Sensex surging 1,022 points as the Nifty ended near a record high.