Stock market today: Dow, S&P 500, Nasdaq rally for 3rd day as Fed rate cut hopes grow, Apple and Alphabet notch records

U.S. stocks extend rally for third day

U.S. markets closed sharply higher on Tuesday, continuing a three-day rally driven by optimism that the Federal Reserve could make its first interest rate cut as early as next month. The gains followed encouraging inflation data and renewed investor confidence that the central bank may begin easing monetary policy soon.

Major indexes rise

Investor sentiment improves

Market analysts noted that the rally was fueled by increasing confidence in a potential Fed rate cut. Recent economic indicators suggested cooling inflation and moderating consumer spending, which could support a shift in policy. One strategist commented:

“Investors are anticipating that the Fed will take a more dovish stance, which is providing significant tailwinds across equities.”

Treasury yields and sectors

U.S. Treasury yields edged lower, reinforcing the view that interest rates may soon stabilize or decline. Rate-sensitive sectors such as real estate and technology benefited the most, while energy stocks saw moderate movements amid stable oil prices.

Outlook ahead

Traders now focus on upcoming economic reports, including labor data and consumer sentiment figures, as they seek confirmation of the Fed’s next steps. The overall market tone remains positive, but volatility may persist as investors assess the timing and scale of potential rate adjustments.

“If the data continue to cooperate, a rate cut in the near term could further lift market sentiment,” analysts added.

Author summary: U.S. stocks advanced for a third day, supported by growing expectations of a Federal Reserve rate cut, with tech giants Apple and Alphabet reaching new highs.

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Yahoo Finance Yahoo Finance — 2025-11-26

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