U.S. stocks made modest gains Tuesday morning despite lingering worries over the economy. By 09:35 ET (14:35 GMT), the Dow Jones climbed 45 points, or 0.1%, the S&P 500 added 23 points, or 0.4%, and the NASDAQ Composite rose 150 points, or 0.6%. The moves came as investors digested a mix of economic data, central bank speculation, and company-specific news.
Manufacturing data adds to the U.S. stock market unease
The latest report from the Institute for Supply Management (ISM) showed that U.S. manufacturing activity contracted for the ninth consecutive month in November. Analysts say the data reflects ongoing challenges, including the impact of tariffs and global supply-chain disruptions.
While contractionary numbers usually spook investors, markets shrugged slightly because these weak figures strengthened expectations of a Federal Reserve interest rate cut in the coming week. Futures markets now price in an 86% probability of a 25-basis-point reduction at the Fed’s December 9-10 meeting.
Fed Rate cut bets and leadership speculation
Economists point out that the shift toward easier policy is influenced by several factors: cooling inflation, slowing growth, and hints from Fed officials about potential rate relief. BofA Global Research updated its forecast to include a 25-basis-point cut in December, followed by two additional quarter-point cuts in mid-2026, bringing the terminal rate to 3.00%-3.25%. Analysts noted that part of this expectation stems from potential new leadership at the Fed rather than changes in economic fundamentals.
The White House is reportedly evaluating candidates to replace Jerome Powell, whose term ends next year, with Kevin Hassett emerging as a frontrunner. This adds another layer of uncertainty for traders, as market reaction often shifts depending on who leads the central bank.
Corporate earnings and key movers
With earnings season still ramping up, Marvell Technology (NASDAQ:MRVL) is in focus after-market hours. The chipmaker is reportedly in advanced talks to acquire AI startup Celestial AI in a multi-billion-dollar cash-and-stock deal. Other companies reporting earnings include MongoDB (NASDAQ:MDB), Vestis (NYSE:VSTS), and Credo Technology (NASDAQ:CRDO).
Stocks tied to Bitcoin remain volatile following the cryptocurrency’s 7% drop on Monday, which triggered broad declines in crypto-linked equities.
Meanwhile, Dell Technologies (NYSE:DELL) rose after President Trump praised the Dell family’s $6.25 billion philanthropic donation. The initiative, part of the “Invest America” program, provides $250 accounts to 25 million American children under 10, supporting early investments in their futures.
Oil prices drift lower amid global tensions
Crude prices retraced some of Monday’s gains, reflecting persistent geopolitical risks and supply adjustments. Brent crude fell 0.7% to $62.74 a barrel, while U.S. West Texas Intermediate (WTI) slipped 0.7% to $58.90.
Concerns include fragile Ukraine peace prospects, heightened U.S.-Venezuela tensions, and OPEC+ decisions on production. While OPEC+ confirmed a small output increase for December, it paused additional hikes in early 2026 amid fears of oversupply.
What this means for investors
The market’s cautious optimism shows that stocks can rise amid mixed economic signals, but volatility remains high. Traders are balancing weak manufacturing data, Fed policy expectations, geopolitical tensions, and corporate earnings.
Key sectors to watch include tech, energy, and crypto-linked stocks, which may provide clues about broader market trends in the coming weeks.
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