Wall Street Ends Higher; Boeing Shares Jump 10%
Among individual names, Warner Bros. Discovery (+2.8%) also gained after reporting it had received a second round of acquisition offers.
Quick overview
- Wall Street's main indexes closed higher as optimism grew over a potential Federal Reserve rate cut next week.
- The Dow Jones Industrial Average rose 0.39%, while the S&P 500 and Nasdaq Composite gained 0.25% and 0.59%, respectively.
- Information technology stocks performed well, with Apple reaching a record valuation driven by strong iPhone 17 sales.
- Investors are awaiting key U.S. employment and inflation data, particularly the PCE price index, which could influence future Fed decisions.
The averages rose in a market growing more optimistic toward year-end on expectations that the Fed may cut rates again next week.
Wall Street’s three main indexes closed moderately higher on Tuesday. Stocks advanced as investors grew more optimistic heading into the final stretch of the year, encouraged by the likelihood of another Federal Reserve rate cut next week.
The Dow Jones Industrial Average, made up of 30 blue-chip companies, climbed 0.39% to 47,474.46. The S&P 500 rose 0.25% to 6,829.37, while the tech-heavy Nasdaq Composite gained 0.59% to 23,413.67.
Information technology was among the strongest performers, driven by gains in giants such as Apple (+1.09%), which hit a new record valuation of $4.22 trillion on the back of strong iPhone 17 sales.
Fed expected to cut rates
Following recent economic data and comments from Fed officials, the market is pricing in a 25-basis-point cut next week. According to CME’s FedWatch tool, the probability of such a move stands above 89%.
The U.S. economic backdrop favors a cut, as additional stimulus is increasingly seen as necessary to revive household consumption and support risk appetite.
Key catalysts ahead
Investors are now awaiting U.S. employment and inflation data due this week. Standing out is the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, which could provide further clarity.
Six of the S&P 500’s 11 major sectors ended lower. Energy (-1.21%) led declines by a wide margin, while industrials (+1.13%) and technology (+0.97%) topped the gainers. Within the Dow, Boeing (+10.05%) was the standout.
Notable movers
Boeing surged after CFO Jay Malave said at a UBS conference that the company’s recovery is “well underway” and that it expects to increase deliveries of its 737 and 787 aircraft in 2026 compared with 2025.
Among individual names, Warner Bros. Discovery (+2.8%) also gained after reporting it had received a second round of acquisition offers — including one from Netflix (+0.20%) — following its request for improved bids from all suitors.
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