FX.co ★ US Stocks Rebound, Still Post Weekly Losses

On Friday, U.S. stocks experienced a significant rebound: the Dow Jones increased by 1.2%, the S&P 500 advanced by 1.1%, and the Nasdaq rose by 0.8%. This uptick followed remarks from New York Federal Reserve President John Williams, who hinted at the possibility of monetary policy moving closer to a neutral stance. This prompted traders to raise the likelihood of a December interest rate cut to nearly 70%. In the early stages of the session, the communication services sector led the gains, with Alphabet surging by 3.3% on the back of momentum from its Gemini 3 model and substantial planned investments in data centers. Meta also saw a uptick of 0.9%, while Intuit rallied following robust financial results. However, as trading continued, the technology sector saw a reversal in fortunes, with Nvidia dropping by 1%, Microsoft declining by 1.3%, Broadcom falling by 1.9%, AMD down by 1.1%, and Oracle plummeting by 5.7% amidst investor reassessment of high AI valuations. Despite the daily gains, the major indices closed the week with losses, as the S&P 500 fell by 2%, the Dow by 1.9%, and the Nasdaq by 3.2%, as investors weighed potential Fed easing against ongoing volatility in the key AI stocks.