Dow Jones jumped more than 600 points, increasing for the third consecutive session

The Dow Jones Industrial Average continued to rise on Tuesday (Nov. 25) as investors assessed expectations of a Federal Reserve (Fed) interest-rate cut and developments in artificial intelligence (AI) deal-making.

At the close of trading on Nov. 25, the Dow Jones climbed 664.18 points (1.43%) to 47,112.45. The S&P 500 added 0.91% to 6,765.88, while the Nasdaq Composite advanced 0.67% to 23,025.59. This marked a reversal from earlier losses during the session. At their intraday lows, the S&P 500 fell 0.7%, while the Dow Jones and Nasdaq Composite slipped 0.2% and more than 1%, respectively.

Investors continued to watch for any news that might influence the Fed’s upcoming monetary policy decision. According to the CME FedWatch tool, markets are pricing in an 83% probability that the Fed will cut interest rates by 0.25% in December 2025.

These expectations were boosted slightly after Bloomberg reported that Kevin Hassett, Director of the White House National Economic Council, is being considered the leading candidate for the next Fed Chair. Investors view Hassett as someone likely to push the Fed toward a lower-rate regime favored by U.S. President Donald Trump. U.S. Treasury Secretary Scott Bessent told CNBC on Tuesday that there is a “very high likelihood” Trump will “make an announcement before Christmas.”

This likelihood has surged since New York Fed President John Williams said on Nov. 21 that there is room to cut rates “in the near term.”

Alphabet shares gained on Tuesday, rising 1.5% to a new record high after The Information reported that Meta Platforms is considering spending billions of dollars on Google-parent Alphabet’s AI chips.

With Meta reportedly looking to buy Alphabet’s chips and Alphabet having just unveiled its upgraded AI model, Gemini 3, last week, analysts said the broader economy stands to benefit from AI. The potential decline in computing costs could make it much easier for non-tech companies to take advantage of productivity gains, thereby boosting earnings growth.

However, with Nvidia shares falling more than 2% after the report, investors may see it as a sign that the company’s dominance in the AI chip sector could be facing new threats.