U.S. stocks jump on rate cut optimism

Stocks closed higher, boosted by gains in Alphabet and Meta Platforms

U.S. stocks jumped on Tuesday and were set for a third straight session of gains, as investors remained optimistic the central bank would cut interest rates at its December meeting.

Stocks closed higher, boosted by gains in Alphabet and Meta Platforms. The Google parent ended up 1.53% at a record close of $323.44 as it neared $4 trillion in market capitalization, which would make it only the fourth company to reach that mark.

The Information reported that Meta Platforms, which gained 3.78% as the biggest lift to the S&P 500, was in talks with Google to spend billions of dollars on the Alphabet unit’s chips for use in its data centres starting in 2027.

Investors also parsed a flurry of economic data, some of which was delayed due to the 43-day U.S. government shutdown.

Retail sales added 0.2% in September after an unrevised 0.6% gain in August, the Commerce Department said.

The Labor Department reported that the Producer Price Index for final demand 0.3% after an unrevised 0.1% decline in August, which matched expectations, as the cost of energy goods soared and producers passed on some tariff costs.

More recent data on Tuesday from ADP said U.S. private employers shed an average of 13,500 jobs during the four weeks ending Nov. 8.

MSCI’s gauge of stocks across the globe gained 9 points, or 0.92%, to 991.31 and was on track for its biggest three-day percentage gain in more than six months. The pan-European STOXX 600 index closed up 0.91%, lifted by the prospect of a U.S. rate cut and optimism over a potential ceasefire in Ukraine.