US close: Wall Street rebounds as bitcoin, Fed cut hopes lift sentiment
By Iain Gilbert
Date: Wednesday 03 Dec 2025
(Sharecast News) - Wall Street stocks closed higher on Tuesday, as major indices attempted to recover from a soft start to December trading in the previous session.
At the close, the Dow Jones Industrial Average was 0.39% higher at 47,474.46, while the S&P 500 advanced 0.25% to 6,829.37 and the Nasdaq Composite came out of the gate 0.59% firmer at 23,413.67.
The Dow closed 185.13 points higher on Tuesday, taking a bite out of losses recorded on Monday as tech stocks and cryptocurrency volatility weighed on sentiment.
Tuesday's gains come after major indices snapped a five‑day winning streak on Monday as risk‑off sentiment continued to weigh. Concerns over sticky inflation, stretched valuations and returns on artificial intelligence investments saw tech heavyweights Alphabet, Palantir and Broadcom come under pressure and cryptocurrencies extend their slide, with bitcoin turning in its worst single day performance since March.
However, sentiment got a boost after Bitcoin rose to trade above $91,000, just 24 hours after recording its worst daily performance since March, tumbling to as low as $84,000 each. Crypto-linked names like Coinbase and Robinhood also traded higher.
Looking ahead, traders remain hopeful of policy support, with markets now pricing a roughly 89% chance of a Federal Reserve rate cut at the conclusion of its 10 December meeting.
Beyond interest‑rate speculation, the central bank also drew attention on Tuesday as Federal Reserve vice chair Michelle Bowman told lawmakers she was working on new rules for banks and stablecoins, with regulators aiming to safeguard competition between Wall Street, fintechs and crypto firms.
"As a regulator, it is my role to encourage innovation in a responsible manner, and we must continuously improve our ability to supervise the risks to safety and soundness that innovation presents," Bowman said.
In the corporate space, Marvell Technology traded sharply higher on the back of its data centre growth projections, while American Eagle Outfitters also rallied after the retailer hiked its full-year guidance after the all-important holiday season got off to a solid start.
Reporting by Iain Gilbert at Sharecast.com
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN