Tue 25 Nov: After the Bell🔒

Your 5’ evening market wrap 📄📈

See the ‘Market Data’ post for tables & charts.

We started posting a ‘Morning Markets Update’ on Substack Notes at ~6 AM NYT — these updates won’t be emailed.

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Good evening,

Stocks extended gains on Tuesday, with all major benchmarks advancing. The Dow Jones outperformed, supported by strength in Home Depot and UnitedHealth, while the Russell 2000 surged 2.3%. The S&P 500 and Nasdaq rose more modestly, weighed down by weakness in Nvidia, and the Healthcare sector led sector performance. The Vix volatility index retreated sharply from Friday’s spike of 28%, dipping below 19% and back to its 200-day moving average.

Nvidia shares plunged as much as 7% intraday before recovering to close 2.6% lower, following reports that Meta is in discussions to spend billions on Google’s AI chips, signalling Alphabet’s progress in challenging the top AI accelerator. Alphabet is trading at an all-time high, approaching a $4tn market cap.

Expectations of a Fed rate cut in December have supported markets, with futures now pricing in over an 82% probability of a quarter-point reduction from the current 3.75–4% range. This outlook also strengthened Treasuries, pushing yields lower as the 10-year note nears 4%, and weighed on the $, with the DXY index falling below 100, losing ground broadly against major currencies. Cryptos failed to follow equities, with Bitcoin lingering below $88,000 despite the stock rally.