US stocks end with gains on increased Fed rate cut hopes

ISTANBUL

US stocks ended higher Tuesday amid increased expectations of a Fed rate cut.

The Dow Jones Industrial Average rose 1.43%, or 664.18 points, to close at 47,112.45.

The Nasdaq increased 0.67%, or 153.59 points, to 23,025.59, while the S&P 500 added 0.91%, or 60.76 points, to 6,765.88.

The Volatility Index (VIX), also known as the "fear index," fell 9.55% to 18.56.

As expectations that the Federal Reserve will continue to cut interest rates in December strengthen, stock markets saw a positive course. According to CME FedWatch, investors expect a December rate cut with a 85% possibility.

Analysts noted that despite the increasing rhetoric about a rate cut, risks persist for disagreements among members at the Fed's monetary policy meeting next month.

Meanwhile, Treasury Secretary Scott Bessent told CNBC Tuesday that President Donald Trump is likely to announce a new chairman of the US Federal Reserve before Christmas.

US media reported that White House National Economic Council Director Kevin Hassett is among the potential candidates being considered for the next Fed chair.

On the macroeconomic data side, US producer prices were up as expected in September, with the Producer Price Index (PPI) rising 0.3% month-on-month and by 2.7% year-on-year.

The Conference Board's US Consumer Confidence Index fell 6.8 points to 88.7 in November, below expectations and reaching its lowest level since April.

US private employers shed an average of 13,500 jobs per week in the four weeks through Nov. 8, according to a preliminary estimate released Tuesday by market research firm ADP.

Retail trade in the US was up 0.2% month-on-month in September, following an increase of 0.6% in August, and below estimates.

Nvidia released a statement saying it was very pleased with Google's success in terms of its advances in artificial intelligence and would continue to supply the company. It followed reports that Meta Platforms is exploring the use of Google’s tensor-processing units for its AI workloads.

The statement added that Nvidia was a generation ahead of the industry.

Alphabet shares gained 1.6%. Among other US tech giants, Meta's shares rose 3.8%, Broadcom's 1.9%, Amazon's 1.5%, Microsoft's 0.6% and Apple and Tesla's 0.4%.

Earnings reports from some US retailers were also closely monitored. Shares of Kohl's, the retail chain that reported better-than-expected profits, rose nearly 43%.

Shares of electronics retailer Best Buy also rose 5.3% after reporting better-than-expected financial results.