US Stocks: Strong Recovery After Volatile Week Amid Hopes for Rate Cuts in December
US stocks rebounded on rate cut hopes, but all major indices posted weekly losses amid AI bubble fears and low consumer confidence.
The Dow Jones closed up 493 points (+1.08%) at 46,245 points, while the S&P 500 rose by 0.98% to 6,603 points, and the Nasdaq increased by 0.88% to 22,273 points.
This recovery follows comments from John Williams, President of the Federal Reserve Bank of New York, indicating that the central bank may lower interest rates again this year. The odds of a rate cut in December increased to 75% from 39% just a day earlier.
However, all three indices recorded weekly losses, with the S&P 500 down about 2% and the Nasdaq down around 3%, amid concerns over an AI bubble and weak consumer confidence. The fear and greed index remains at a level of 'extreme fear', at its lowest since April.
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