Traders work on the floor of the New York Stock Exchange (NYSE) on Monday, December 22, 2025 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
Stocks rose for the fourth straight session on Tuesday as artificial intelligence stocks continued to outperform during the holiday-shortened week.
of S&P500 It rose 0.46% to close at a record level of 6,909.79. The market-wide index is currently just below its intraday high of 6,920.34.
of Nasdaq Composite It rose 0.57% to end at 23,561.84. Big tech profits Nvidia and broadcomup about 3% and more than 2%, respectively, pushing the index higher. of Dow Jones Industrial Average It rose 79.73 points (0.16%) to settle at 48,442.41.
Traders continued to expect the U.S. Federal Reserve to cut benchmark interest rates next year, even after the release of new economic data that was much better than expected. The Commerce Department reported that the U.S. economy expanded at a pace of 4.3% in the third quarter, well above the 3.2% forecast by economists compiled by Dow Jones.
The report, which was postponed from its scheduled Oct. 30 release date because of the record U.S. government shutdown, initially spooked investors into believing it was unlikely the Federal Reserve would cut interest rates in early 2026. The stock started the trading day slightly lower, but has since recovered.
Federal funds futures traders are still pricing in two rate cuts by the end of next year, the CME FedWatch tool showed.
“It may be hard to believe that the market will recover from two rate cuts at this point,” said Eric Sterner, chief investment officer at Apollon Wealth Management. “While a rate cut at the beginning of the year is probably unlikely, we will soon find out who President Trump will nominate as the new Fed chair, and it is almost certain that he will choose someone a little more dovish than Powell.”
The New York Stock Exchange will close early on Wednesday, Christmas Eve, at 1:00 p.m. Eastern Time, and will be closed on Thursday for Christmas Day.
Correction: A previous version misspelled the name Apollon Wealth Management.
