US stock markets end in green
Dow adds 0.39%, Nasdaq up 0.59%, S&P climbs 0.25%; fear index falls 3.77%
A view of the New York Stock Exchange building in New York City, New York, U.S., January 28, 2025
ISTANBUL
US stocks closed higher on the second trading day of the week, fueled by increases in tech shares and Bitcoin.
The Dow Jones Industrial Average rose 0.39%, or 185.13 points, to close Tuesday at 47,474.46.
The Nasdaq increased 0.59%, or 137.75 points, to 23,413.67, while the S&P 500 added 0.25%, or 16.74 points, to 6,829.37.
The Volatility Index (VIX), also known as the "fear index," fell 3.77% to 16.59.
The rise in equities followed Bitcoin's rebound and tech shares' rise. Bitcoin climbed over 6% Tuesday, recouping some of its losses from the preceding day.
Tech players associated with the artificial intelligence (AI) trade boosted the larger market as well. Nvidia saw a nearly 1% increase, while Credo Technology, a player in AI infrastructure, saw a 10.1% boost and an all-time high following better-than-expected earnings.
Also, expectations of a further Federal Reserve rate cut in December strengthened, reflecting the positivity in stocks. According to the CME FedWatch tool, investors now see an over 89% chance of a cut.
Analysts noted that the odds of a 25-basis-point reduction have risen following dovish remarks from several Fed officials, adding that recent data also gives the central bank room to ease policy further.
Meanwhile, President Donald Trump said Tuesday that he will probably announce his pick to be the next Federal Reserve chair early next year.
“We’ll be announcing somebody, probably early next year, for the new chairman of the Fed,” Trump said during a Cabinet meeting at the White House.
He later called White House National Economic Council Director Kevin Hassett a "potential Fed chair."
On the corporate side, US aviation giant Boeing's shares gained 10.2% after it announced that it expects deliveries of its 737 and 787 jets to increase next year.
Warner Bros. Discovery shares also rose 2.8% following news that Netflix made a mostly cash offer for the company's entertainment and streaming assets in a second round.
Procter & Gamble's shares meanwhile fell 1.1% after Chief Financial Officer Andre Schulten told a conference that the company's US sales fell significantly in October and that he expected no change in November.
