The S&P 500 moved higher on Tuesday as investors renewed bullish bets on technology stocks. The shift came as expectations grew for an upcoming Federal Reserve interest rate cut.
By 2:52 p.m. ET (19:52 GMT), the Dow Jones Industrial Average was up 234 points, or 0.5%. The S&P 500 gained 0.4%, while the Nasdaq Composite climbed 0.8%.
Fed Rate Cut Expectations Rise
Fresh data from the Institute for Supply Management showed continued weakness in U.S. manufacturing. This added to the growing belief that the Federal Reserve may shift policy next week. Interest-rate futures now imply an 86% chance of a 25-basis-point cut at the December 9–10 meeting.
Cooling economic indicators, easing inflation, and recent comments from senior Fed officials have strengthened the case for earlier rate cuts than previously expected.
Uncertainty around the next Fed Chair is also in focus. The White House is reviewing several candidates to replace Jerome Powell, whose term ends next year.
BofA Global Research said Monday that it now expects a 25-basis-point cut in December, revising its earlier forecast for unchanged rates. The bank now anticipates two more cuts in 2026, in June and July, bringing the terminal rate to 3.00%–3.25%.
BofA analysts said the shift reflects the likelihood of new Fed leadership rather than a changed view of the economy.
Recent reports suggest White House economic adviser Kevin Hassett is the leading contender to become the next Federal Reserve Chair.
Marvell Leads the Earnings Highlights
With few major earnings scheduled, Marvell Technology is expected to be the key report after the closing bell. The semiconductor company competes with Broadcom in custom and networking chips. Media reports on Monday indicated Marvell is in advanced talks to acquire Celestial AI in a multibillion-dollar cash-and-stock deal.
Other notable companies reporting late Monday include MongoDB, Vestis, and Credo Technology.
Dell Technologies shares rose Tuesday after President Donald Trump praised the Dell family following a major philanthropic announcement. Michael and Susan Dell pledged $250 each to 25 million American children under age 10 to help fund investment accounts. The $6.25 billion commitment expands the “Invest America” initiative launched under President Trump’s One Big Beautiful Bill Act, which provides $1,000 to children born from 2025 to 2028.
Bitcoin Rebounds and Lifts Crypto-Linked Stocks
Bitcoin jumped more than 7%, rebounding above $90,000 as dip buyers stepped in after the recent pullback. The recovery helped stabilize sentiment across crypto-related stocks.
Shares of Strategy Inc, Coinbase Global, and Marathon Petroleum were all sharply higher.
