U.S. markets bounced back on Tuesday after a rocky start to December. Stocks and cryptocurrencies had taken a big hit on Monday, but investors regained some confidence. Futures for major indexes were up slightly, with the S&P 500 rising 0.24%, the Nasdaq 100 climbing 0.40%, and the Dow Jones gaining 0.14%. The rebound came as traders looked ahead to next week’s Federal Reserve meeting, where a potential interest rate cut is expected.

Tech stocks led the recovery, especially companies tied to AI and cloud computing. The S&P 500 was helped by gains in tech and communication stocks. The Dow stayed flat as money moved out of safe sectors and into growth-focused companies. The Nasdaq had the strongest bounce, thanks to solid demand for AI, software, and chip stocks.

Global markets were mostly calm but cautious. Europe’s Stoxx 600 and Germany’s DAX edged up about 0.2%. In Asia, optimism was higher. Japan’s Nikkei rose 0.5% thanks to banking stocks, while South Korea’s Kospi jumped 1.5%, led by chipmakers like Samsung and SK Hynix. These gains followed news of reduced tariffs and solid demand for semiconductors.

Japanese bond yields hit new highs, with the 30-year yield briefly touching 3.42%, signaling possible rate hikes from the Bank of Japan. In the U.S., the 10-year Treasury yield stayed steady at 4.12% as markets priced in a high chance (87%) of a Fed rate cut on December 10.

AI and cloud tech companies saw strong investor interest. MongoDB soared over 23% after reporting better-than-expected revenue of $628 million, driven by its Atlas cloud platform. Analysts raised their price targets, seeing big potential in AI-powered database growth.

Other AI-related stocks also did well. Snowflake rose 3.4% as investors expect strong cloud demand. Marvell Technology gained on reports it’s in talks to buy Celestial AI in a deal that would boost its AI infrastructure capabilities. Credo Technology surged 16.6% after strong earnings. NVIDIA climbed nearly 1% after announcing deeper investment in AI design firm Synopsys.

Eventbrite shares skyrocketed 79% after agreeing to a $500 million buyout by Bending Spoons, turning the event platform into a private company. This deal marked one of the biggest recent consumer tech acquisitions.

In biotech, Polyrizon jumped over 130% after it confirmed its nasal spray is ready for large-scale production and clinical trials, boosting investor confidence in its commercialization plans.

Streaming and media stocks also drew attention. Warner Bros. Discovery rose 1.5% amid reports that major players like Netflix and Comcast are eyeing pieces of its content portfolio, hinting at potential media consolidation. Alphabet gained after reports said Google’s new Gemini AI model is outperforming OpenAI’s GPT, reigniting competition in artificial intelligence.

Cryptocurrencies recovered slightly after Monday’s sharp drop. Bitcoin bounced back 1.6% to around $87,000, though still far below its all-time high of $126,000. Ethereum dipped slightly while XRP inched up. Crypto-linked stocks like Coinbase and MicroStrategy followed Bitcoin’s lead with modest gains.

MicroStrategy’s leveraged ETFs are still down over 80% this year, but the company announced a $1.4 billion reserve to manage debt and dividend payouts, aiming to ease investor concerns.

A major move came from Bank of America, which announced it will let clients allocate up to 4% of their portfolios into crypto starting January 5 through ETFs like Bitwise and BlackRock’s iShares Bitcoin Trust. This signals growing mainstream acceptance of digital assets.

Retail stocks moved in different directions. Citi Trends jumped nearly 8% after beating revenue estimates and narrowing its losses. The company also raised its profit guidance for the year and sees stronger earnings by 2027.

Energy prices dropped again, helping consumers and boosting retail spending ahead of the holidays. Gas prices fell to $3 per gallon — the lowest since 2021.

Commodities pulled back after recent highs. Gold dropped nearly 1% to $4,236 while silver slipped 1.75%. Despite the dip, silver remains up nearly 95% this year — the best-performing precious metal so far in 2025.

Oil prices also fell slightly as traders weighed OPEC+ supply cuts against weaker demand forecasts. Brent crude and U.S. crude both moved lower as global growth concerns resurfaced.

Asian stocks got another lift from U.S. tariff cuts on South Korean cars, boosting shares of Hyundai and Kia by over 4%. Samsung climbed over 2% after announcing a new tri-fold Galaxy phone, set to launch in early 2026 for around $2,445.

Tesla rose slightly after strong EV sales in China for November — up 10% year-over-year and 41% from October. Although sales are lagging in Europe, Tesla continues to perform well in Norway, capturing over 31% market share.

Tesla trades near $430 per share with a $1.43 trillion market cap but faces mixed views from Wall Street. Some analysts see upside thanks to growth in software and energy storage, while others worry about valuation risks.

NVIDIA continues to attract investors near $181 per share, thanks to strong AI infrastructure plans including deeper ties with Synopsys. Microsoft remains a top pick around $486 per share due to stable Azure cloud growth and AI tools like Copilot.

Alphabet traded near $318 as investors shifted from smaller software names toward larger tech leaders following Gemini’s performance against OpenAI models.

Institutional investors rotated out of risky small caps and into companies with strong balance sheets and cash flows ahead of year-end portfolio reviews. They focused on firms with buybacks and steady profits — a defensive move before the Fed decision.

Insider buying was limited due to earnings blackout periods but still occurred in key tech names like AMD, Broadcom, and Palantir — showing confidence in future AI-related revenue growth through early 2026.

Tuesday’s market action showed signs of recovery as investors prepared for key inflation data that could confirm a trend toward lower prices — potentially prompting the Fed to cut rates soon.

The Nasdaq 100 closed near 25,500 thanks to strong demand for AI chips and cloud services. The S&P 500 approached technical resistance around 6,950–7,000 — a breakout above that level could trigger a December rally. The Dow hovered near 47,400 but lagged behind due to weakness in industrials and cyclical sectors.

Technology, semiconductors, and digital assets continue leading the market into year-end. Bitcoin stabilizing above $87K and gold holding near $4,235 suggest markets are balancing risk with safe assets effectively.

Overall market sentiment is cautiously optimistic heading into December’s final weeks. If inflation keeps cooling, we could see a rally powered by AI enthusiasm, institutional buying, and portfolio rebalancing before the new year starts.