Markets Bounce Back as Bitcoin Snaps Higher and Tech Leads the Charge

With input from CNBC, AP, Reuters, and Bloomberg.

US stocks clawed back some lost ground on Tuesday, helped along by a sharp rebound in bitcoin and strength in big-name tech.

The Dow added 167 points (0.4%), the S&P 500 ticked up 0.3%, and the Nasdaq jumped 0.7%, shaking off part of Monday’s slump. Bitcoin staged an impressive comeback of its own, surging 7% after a bruising start to the week.

Tech names tied to the AI trade did much of the heavy lifting. Nvidia rose about 1%, while Credo Technology exploded 14% to a record high thanks to better-than-expected earnings. The move helped settle some nerves in what’s been an up-and-down session: both the S&P 500 and Dow dipped into the red earlier in the day before finding their footing again.

Tuesday’s bounce comes after all three major indexes snapped a five-day winning streak to start the week. Investors are still wrestling with stubborn inflation worries, stretched valuations and anxiety over whether heavy AI spending will pay off quickly enough.

But hope springs eternal for a year-end push. Traders are largely betting that the Federal Reserve will cut interest rates on Dec. 10, with market odds sitting near 89%, up sharply from mid-November.

Economists say the next few days could shift that outlook. A batch of data — ADP employment, jobless claims, and a delayed inflation report from September — may help shape the Fed’s thinking. Consumer sentiment and industry reports on services, used cars and production could also sway markets if results come in hot or cold.

Even with all the uncertainty, the backdrop isn’t entirely bleak. Strong Black Friday and Cyber Monday spending, low unemployment and firm corporate earnings have kept the market upright. Historically, December tends to treat investors well: the S&P 500 has averaged a gain of more than 1% in the month going back to 1950.

For now, Wall Street seems happy to take the win. Tech is finding its rhythm again, bitcoin’s bounce is soothing Monday’s bruises, and traders are settling in for what could be a pivotal week heading into the Fed meeting.