U.S. stock indices closed higher overnight, with Intel surging over 8% as tech stocks broadly rebounded. However, Tesla faced short-selling pressure, while ABTC, a Bitcoin mining company backed by the Trump family, plummeted 38% after triggering multiple trading halts.
**Markets Rally as Fed Rate Cut Expectations Build** On December 2 (Tuesday), the three major U.S. indices posted gains. The S&P 500 rose 0.25% to 6,829.37, the Nasdaq Composite climbed 0.59% to 23,413.67, and the Dow Jones Industrial Average advanced 0.39% to 47,474.46.
Growing speculation about Federal Reserve rate cuts intensified after Bank of America Global Research projected a 25-basis-point cut in December, citing weak labor market data and dovish signals from policymakers. Separately, former President Trump hinted he may name Kevin Hassett, former White House economic advisor, as the next Fed Chair in early 2026—a pivotal decision for his potential second term.
**Trump-Backed ABTC Crashes Despite Bitcoin Rebound** Bitcoin rallied 6%, lifting crypto-linked stocks like MSTR and BMNR. However, ABTC, the Trump-affiliated mining firm, nosedived 38% amid repeated trading halts, reflecting lingering sell-off pressure across Trump-linked crypto assets.
**Tech Sector Rebounds; Intel Leads Gains** Tech stocks broadly recovered, with Intel jumping over 8% to lead S&P 500 components. Apple, Meta, and Nvidia rose 1.09%, 0.97%, and 0.86%, respectively. Nvidia CFO Colette Kress clarified that its $100 billion OpenAI investment plan remains non-binding, with potential revenue of $400–500 billion from deploying AI systems excluded from current guidance.
**Tesla Targeted by Short-Seller Michael Burry** Tesla dipped 0.21% after prominent short-seller Michael Burry revealed a bearish bet, criticizing shareholder dilution (3.6% annually) and CEO Elon Musk’s $1 trillion compensation package. Tesla’s 209x forward P/E vastly exceeds its historical average and the S&P 500’s 22x.
**Boeing Soars 10% on Cash Flow Outlook** Boeing surged 10.16%—its biggest gain since April—after affirming feasibility of $10 billion long-term cash flow targets and anticipating delayed DOJ penalties until 2026.
**Chinese Tech Stocks Mixed** BYD, JD.com, Pinduoduo, and Xiaomi edged up 0.46%–1.03%, while Meituan, Alibaba, and NetEase fell 1.83%–2.65%.
**Gold Dips but Fed Dovishness Caps Losses** COMEX gold futures briefly slid below $4,200/oz (-1%) before settling 0.84% lower. Fed rate-cut bets (87% probability per CME FedWatch) cushioned the drop. Upcoming ADP jobs data and PCE inflation readings will test the Fed’s December policy trajectory.
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