Wall Street Rebounds as Risk Appetite Returns to Markets

U.S. stocks regained momentum after the previous day’s pullback, closing higher as investor sentiment improved across the board. The S&P 500 rose about 0.4%, while the tech-heavy Nasdaq 100 climbed nearly 0.9%. The Dow Jones Industrial Average also advanced around 0.4%. This rebound highlights a positive start to December — a month that has historically delivered strong performance for equities.

The recovery followed a session marked by notable declines, including a sharp drop of more than 7% in Moderna’s stock after a report linked COVID-19 vaccines to cases of myocarditis among young people. Crypto-related stocks also retreated as Bitcoin fell more than 5%, dragging down Coinbase by over 4% and MicroStrategy by more than 3%. In the aviation sector, Joby stock slipped over 6%.

On the upside, Synopsys led the major indices’ gainers with a surge of more than 4%, fueled by a $2 billion investment from a major tech company as part of an expanded engineering partnership. The news boosted optimism across the broader technology sector.

Economic data offered mixed signals, with the ISM manufacturing PMI for November coming in weaker than expected, putting additional pressure on the U.S. dollar. At the same time, markets are increasingly confident that the Federal Reserve will move toward easing monetary policy, currently pricing in an 88% chance of a 25-basis-point rate cut at this month’s meeting.

Sentiment was further supported by a new trade agreement between the United States and the United Kingdom, allowing the import of pharmaceuticals without customs duties in exchange for significantly reduced costs paid by drugmakers to the UK’s National Health Service.

According to the latest outlook from the OECD, the U.S. economy is expected to grow by 2% this year and 1.7% next year, while global growth is projected to slow to 2.9% in 2026 from 3.2% in 2025. The organization also warned that tightening trade restrictions could disrupt global supply chains and production.

Overall, Wall Street appears to be regaining its footing as market pressures ease and confidence improves, with investors now turning their attention to the upcoming Fed decision that could shape the final weeks of the year. of myocarditis among young people. Crypto-related stocks also retreated as Bitcoin fell more than 5%, dragging down Coinbase by over 4% and MicroStrategy by more than 3%. In the aviation sector, Joby stock slipped over 6%.

On the upside, Synopsys led the major indices’ gainers with a surge of more than 4%, fueled by a $2 billion investment from a major tech company as part of an expanded engineering partnership. The news boosted optimism across the broader technology sector.

Economic data offered mixed signals, with the ISM manufacturing PMI for November coming in weaker than expected, putting additional pressure on the U.S. dollar. At the same time, markets are increasingly confident that the Federal Reserve will move toward easing monetary policy, currently pricing in an 88% chance of a 25-basis-point rate cut at this month’s meeting.

Sentiment was further supported by a new trade agreement between the United States and the United Kingdom, allowing the import of pharmaceuticals without customs duties in exchange for significantly reduced costs paid by drugmakers to the UK’s National Health Service.

According to the latest outlook from the OECD, the U.S. economy is expected to grow by 2% this year and 1.7% next year, while global growth is projected to slow to 2.9% in 2026 from 3.2% in 2025. The organization also warned that tightening trade restrictions could disrupt global supply chains and production.

Overall, Wall Street appears to be regaining its footing as market pressures ease and confidence improves, with investors now turning their attention to the upcoming Fed decision that could shape the final weeks of the year.