US Stocks Close Higher: Dow jumps 662 points as fed signals more cuts; Nvidia rebounds, tech and small caps rally to end volatile week

The Dow Jones jumped 662 points (1.5%) on Friday after New York Fed President John Williams suggested more rate cuts may come this year The Nasdaq and S&P 500 both rose 1.4%, helped by a strong comeback in Nvidia shares, which went up more than 1% after a Bloomberg News report said the Trump administration may allow sales of H200 chips to China, as per the Bloomberg News.

John Williams said, “I view monetary policy as being modestly restrictive… I still see room for a further adjustment in the near term”. His comments made investors believe the Fed will cut rates again in December, marking the third cut in 2025.

Lower fed rates boost market hopes

Fed funds futures showed over 70% chance of a rate cut, up from less than 40% the day before. Rate-sensitive stocks like Home Depot, Starbucks and McDonald’s rose, as investors hoped lower rates would boost spending. Jay Hatfield said, “We think there definitely should be a cut… It’s going to depend on the next … employment report,” as per the CNBC interview.


Markets had fallen sharply on Thursday after Nvidia’s earlier rally collapsed, even though it reported strong earnings. Despite Friday’s bounce, all three indexes are still down this week — S&P 500 and Dow are down more than 1%, Nasdaq down around 2%.Hatfield also said the recent drop is “a normal, seasonal, post-earnings valuation pullback,” adding that “the bubbles portion of the market getting annihilated”.

Tech stocks, crypto and small caps move

Bitcoin fell nearly 3% Friday and is down over 11% for the week, hitting levels not seen since April. Hatfield said, “The only real question is, ‘Where do we bottom out at?’”, as per the report by CNBC. ITB (Home Construction ETF) surged nearly 6%, on track for its best day since July 22, as investors bet on a December rate cut.

Nvidia gained again after Bloomberg reported Trump may approve H200 chip sales to China, though no decision is final. Raymond James restarted coverage of Nvidia (strong buy) and AMD (outperform), saying both have long-term growth potential. The firm said Nvidia has “significant competitive moats” and AMD is best positioned to compete in GPUs, with price targets showing 51% upside for Nvidia and 83% upside for AMD.

Alphabet outperformed all “Magnificent Seven” stocks, rising 2% Friday and about 7% for the week due to excitement over its new Gemini 3 AI model and strong TPUs. Alphabet now has the best yearly gain in the Mag 7 (56%), with Nvidia second at about 33%, as stated by CNBC report. Small-cap stocks jumped, with the Russell 2000 rising 2.8%, narrowing its weekly loss to under 1%.

FAQs

Q1. Why did the US stock market rise today?

The market rose mainly because Fed President John Williams hinted at possible rate cuts in December, which boosted investor confidence.

Q2. Why did Nvidia and other tech stocks go up?

Nvidia and tech stocks climbed after reports said the US may allow H200 chip sales to China and analysts predicted strong long-term growth.