Tech Stocks Lift S&P 500 as Fed Rate-Cut Expectations Rise

The S&P 500 closed slightly higher on Tuesday, supported by renewed strength in tech stocks as traders increased their bets on a Federal Reserve rate cut. By the closing bell, the Dow Jones Industrial Average climbed 0.4%, the S&P 500 added 0.2%, and the NASDAQ advanced 0.6%.

Market optimism grew after the latest ISM data signaled continued weakness in U.S. manufacturing, reinforcing expectations that the Fed could begin easing policy as soon as next week. Futures markets now price in an 86% chance of a 25-basis-point cut at the Dec. 9–10 Fed meeting. Softer economic indicators, easing inflation pressures, and recent remarks from Fed officials hinting at earlier-than-expected cuts have fueled this shift in sentiment.

Speculation surrounding future Fed leadership is also influencing markets, with reports suggesting White House economic adviser Kevin Hassett has become the leading contender to replace Chair Jerome Powell when his term expires next year. Adding to the momentum, Bank of America revised its outlook, now anticipating a December cut and projecting two more reductions in mid-2026, citing potential policy changes under new leadership.

In corporate news, Marvell Technology is set to headline a light earnings calendar, while MongoDB surged over 22% after raising its full-year guidance. Media reports also surfaced that Marvell is in advanced talks to acquire AI chip startup Celestial AI in a multibillion-dollar deal.

Dell Technologies gained after President Donald Trump praised the Dell family for announcing a massive $6.25 billion philanthropic initiative, providing $250 to each of 25 million U.S. children as part of the broader “Invest America” program.

Boeing shares jumped 10% after forecasting positive free cash flow for 2026 and securing a $104.4 million U.S. Navy contract for aircraft display repairs.

In crypto markets, Bitcoin rebounded more than 7% to reclaim the $90,000 level, boosting sentiment and lifting related stocks including MicroStrategy, Coinbase, and Marathon.