US Stock Market Today: S&P 500 Rises 1.4% on Tech Rebound and Growing Optimism for December Rate Cut

Global equities opened the Thanksgiving week on a firmer tone as investors returned to technology shares and increased bets on another Federal Reserve rate cut in December. US benchmarks rose in early New York trading, while European stocks also edged higher. Cryptocurrency prices fell, and oil traded near recent lows as traders watched diplomacy around Ukraine.

Technology shares lift US and European stock markets

Market gains centered on large tech firms. The S&P 500 climbed about 1.4% in morning trade, and the NASDAQ 100 added close to 2.3%, outperforming the Dow Jones Industrial Average, which rose 0.6%. Futures had already pointed higher after last week’s volatility tied to stretched AI valuations. Analysts said bargain buying and positioning ahead of key data helped stabilize sentiment.

European equities followed the US lead. The Stoxx Europe 600 rose about 0.4%, supported by gains in global tech and e-commerce stocks, including Alphabet and Alibaba. Traders continued to watch defense shares, which slipped as headlines suggested progress toward US-backed talks on a Russia-Ukraine settlement.

Currency moves stayed modest but reflected a cautious risk mood. The Bloomberg Dollar Spot Index edged higher, while the euro held near $1.15. Sterling slipped slightly, and the yen weakened past 157 per dollar as US yields stayed relatively firm. The MSCI World Index rose close to 1%, showing that the stock rebound spread beyond the US.

Fed Rate Cut Expectations Grow as Data Week Begins

Interest-rate expectations remained the main macro driver. Fed Governor Christopher Waller said he could support a rate cut next month if incoming data stays consistent with cooling inflation and softer hiring. New York Fed President John Williams had made similar comments on November 21, which pushed markets to reprice the policy path.

Traders now price roughly a two-thirds chance of a December reduction, even as the recent US government shutdown delayed several releases. Investors will focus on September retail sales, producer prices, durable goods orders, and weekly jobless claims for fresher signals on consumer demand and labor trends. Market strategists said the data lag leaves room for different readings of growth, which keeps rate-sensitive assets volatile.

Bitcoin Slides While Safe Havens Remain Firm

Cryptocurrencies extended a month-long pullback. Bitcoin slipped about 2% toward $86,000 and remained on pace for its weakest month since the 2022 crypto-credit collapse. Analysts linked the decline to deleveraging, ETF outflows, and broader risk aversion toward speculative assets. Ether softened slightly near $2,800.

US Treasuries and gold saw an increase in demand. The 10-year Treasury yield eased to around 4.05% as investors positioned for lower policy rates. Spot gold rose roughly 0.6% and held near record territory, supported by the softer real-rate outlook and ongoing geopolitical uncertainty.

Oil Stays Pressured on Peace-Deal Hopes and Supply Outlook

Crude prices traded in a narrow band. West Texas Intermediate hovered near $58 a barrel after falling earlier in the month, with traders balancing the chance of a Russia-Ukraine peace deal against still-tight inventories. Several banks have also trimmed medium-term price forecasts, reflecting expectations for more non-OPEC supply.

Energy analysts said diplomacy could bring more barrels to market if sanctions ease, but they also noted that any agreement could take time to implement. Until clarity improves, oil markets may track headlines closely, while equity investors keep attention on rate policy and the health of US consumers.

Also Read: US Stock Market Today: S&P 500 Struggles as NVIDIA and Megacaps Face Declines Amid Valuation Concerns