Stock indexes closed higher on Tuesday, with the S&P 500 up +0.91%, Dow Jones up +1.43%, and Nasdaq up +0.58%. Dovish economic news fueled expectations of a Fed rate cut in December. Retail sales and PPI data fell short, pushing bond yields down. ADP reported a decline in private payrolls and consumer confidence dropped.

Initial stock losses reversed, led by tech stocks. Nvidia’s deal with Meta Platforms on Google AI chips affected chip stocks. Retail sales and PPI data missed expectations. Home prices rose slower than forecast. ADP reported weekly private payroll declines. Consumer confidence hit a 7-month low. Pending home sales exceeded expectations. Economic reports and Fed Beige Book due Wednesday.

Market anticipates an 80% chance of a Fed rate cut in December. Q3 earnings season shows 83% of S&P 500 companies exceeding forecasts. Overseas markets closed higher. Interest rates fell as bond yields dropped. European bond yields declined. ECB unlikely to cut rates in December. Tech stocks led market gains. Home builders rallied. Casino stocks rose on revenue growth.

Kohl’s, Symbotic, Amentum Holdings, Keysight Technologies, and Zoom Communications reported positive earnings, boosting their stock prices. Analog Devices and Best Buy also posted strong earnings. Burlington Stores and J M Smucker reported lower-than-expected revenue, while Nvidia and Oracle saw declines due to market factors. Coherent Corp fell after a stake sale. Earnings reports continue.

Read more at Nasdaq: Stocks Settle Higher as US Economic News Lifts Fed Rate Cut Expectations