FX.co ★ US Stocks Rise in Afternoon Trading

On Tuesday afternoon, U.S. stocks demonstrated strength as investors considered the implications of advancements in AI and the likelihood of a Federal Reserve interest rate reduction. The S&P 500 rose approximately 0.7%, the Nasdaq increased by 0.3%, and the Dow experienced a significant boost of over 500 points. Key sectors such as communication services, healthcare, and materials saw substantial gains, although the broader technology sector lagged behind. Despite this, Alphabet's shares climbed around 1.3%, and Meta's shares surged by more than 2.5% following news that Meta is contemplating a multi-billion dollar acquisition of Google's AI chips. Conversely, Nvidia dropped over 3.5% and has declined about 15% for the month, potentially marking its worst performance since September 2022 if the trend continues. Oracle experienced a decline of more than 2%, while AMD's shares fell by over 7%. Investors also considered mixed economic data, including retail sales falling short of expectations and the ADP report revealing average weekly private payroll losses of 13,500 for the four weeks ending November 8. Meanwhile, producer prices strengthened in September. The market is currently anticipating roughly an 85% probability of a 25 basis point Federal Reserve rate cut next month.