United States benchmark averages finished in the green on Tuesday (Wednesday AEDT), buoyed by a rebound in bitcoin and fresh gains across major technology names as traders recaptured ground lost at the start of the week.
The Dow Jones Industrial Average rose 185.1 points or 0.4% to 47,474.5, the S&P 500 gained 16.8 points or 0.3% to 6,829.4, and the Nasdaq Composite added 137.8 points or 0.6% to 23,413.7.
Bitcoin advanced 5.8%, recovering Monday’s slide and helping lift sentiment across risk assets.
Technology shares linked to the artificial intelligence theme strengthened, as Nvidia added 0.8%, Apple gained 1.1%, Microsoft added 0.7%, and Intel jumped 8.7%.
Credo Technology surged 10.% after delivering better-than-expected quarterly earnings.
Boeing gained 10.2% after the planemaker projected higher deliveries of its 737 and 787 aircraft next year.
Procter & Gamble weighed on the index, down 1.1% after warning it expects an impact from the ongoing U.S. government shutdown.
Warner Bros Discovery rose 2.8% following reports that it had received a second round of takeover bids, including an approach from Netflix.
Investors are now looking to Friday’s release of the personal consumption expenditures index - the Federal Reserve’s preferred inflation gauge - which could influence expectations ahead of next week’s policy meeting.
Markets are also watching closely for indications of who might succeed Fed Chair Jerome Powell when his term ends next year, with White House economic adviser Kevin Hassett reported to be among the leading candidates.
Major U.S. indices began the week lower, ending a five-day winning streak on Monday. Sentiment has been dampened in recent weeks by concerns over stubborn inflation, elevated equity valuations and questions about the near-term payoff from heavy investment in artificial intelligence.
Even so, investors are searching for catalysts that could fuel a year-end rally. Market pricing now implies an 89.2% probability of a 25-basis-point rate cut at the Fed’s meeting, up from 63% a month earlier, according to CME Group FedWatch Tool.
On the bond markets, the yield on the 10-year Treasury fell 0.1% to 4.088%, while the two-year yield declined 0.5% to 3.514%.
