U.S. stock futures were mostly flat on Tuesday evening, right after a major rally session of the day pushed the essential indexes higher. Dow-related futures went up a bit, while contracts linked to the S&P 500 and Nasdaq were almost unchanged.
This limited action is a follow-up to a very volatile session that, in the end, was positive for Wall Street. The Dow made it to a third consecutive winning day, gaining more than 660 points in a broad rally that lifted the mood after several weeks of uncertainty. The index moved up by about 1.4% as several large-cap names returned and renewed interest in heavily sold technology stocks drove gains.
Market players do not fully embrace the recent rebound but rather treat it with guarded optimism. Following weeks of selling pressure driven mainly by valuation concerns, some investors seem to be returning to equities in hopes of snatching a year-end rally. However, the absence of momentum in futures trading is more indicative of doubt than of firm conviction.
Tech Stocks Help Lift Markets, but NVIDIA Slides as Competition Rises
Tech shares played a pivotal role in Tuesday’s rally, with select mega-cap names helping stabilize the broader market. Alphabet surged to fresh record highs amid reports that Meta may integrate Google’s Tensor Processing Units into its data centers beginning in 2027, a development closely watched by traders betting on the evolution of AI infrastructure.
Alphabet’s rally was especially notable given the recent volatility across artificial intelligence leaders. The stock has now marked several record-setting closes this month, reinforcing its momentum as one of the strongest performers among large U.S. tech firms.
Meanwhile, Nvidia shares came under pressure, sliding more than 2.5%. This follows earlier market turbulence tied to Nvidia-related sell-offs, which continue to shape investor sentiment around AI-driven hardware exposure. The decline followed speculation that increased competition, particularly around custom AI silicon, may begin to erode Nvidia’s dominant position in the chip market. This fall also shows that investors are not sure about the demand forecasts that keep changing and the fact that hardware strategies are diversifying across major platforms.
Despite these actions, the Nasdaq Composite was able to post gains for the session by following the strength of broader tech and communication-services names.
Investors Eye Federal Reserve Outlook and Potential Changes in Leadership
The Federal Reserve is still the main concern for Wall Street as traders are still changing their expectations of the forthcoming policy decisions. Futures markets now show about an 85% chance of a quarter-point rate cut in December, suggesting most investors expect the central bank to ease operations sooner rather than later.
Interest rate expectations have shifted quickly in the past few trading sessions. Softer inflation, slower growth data, and comments from government officials favoring a more accommodative approach are driving the changes.
One more element that adds to market speculation is the force of market expectations about the next chair of the Federal Reserve. Treasury Secretary Scott Bessent said earlier Tuesday that there is a strong chance the White House will reveal its choice before Christmas. Expectations have begun tilting toward Kevin Hassett, a current adviser seen as more supportive of lower interest rates.
Investors are closely monitoring the decision, as leadership tone could shape policy direction well into 2026.
November Remains a Challenging Month for Stocks Despite Recent Strength
Even with the latest rally, the major indexes remain in negative territory for the month. Sharp swings in sentiment have defined November, driven by reevaluations of earnings strength, rate expectations, and the durability of growth among AI-linked companies.
The S&P 500 is down roughly 1.1% month to date, while the Nasdaq has fallen close to 3%. The Dow has kept going but still, it is down roughly 1% for the month.
Investors explain the soft patch as a cooling period that was bound to happen after the huge rally of high-growth tech companies over the last few months. Some analysts suggest that the break might be beneficial if it leads to more balanced market leadership going into the year-end.
However, a large number of traders still keep their guard up. The absence of obvious upside drivers, along with the changes in policy expectations, has resulted in a lack of conviction among institutional and retail investors.
Alphabet Extends Record Run as Bullish Momentum Accelerates
Recently, Alphabet has been one of the most impressive performers, recording new highs on several occasions throughout November. The jump, among other things, has been supported by the market’s positive view of the Gemini platform and growing belief that the company is the one to lead the next wave of AI.
The stock has rallied sharply over the last month, gaining more than 24%. The stock was up by more than 50% over the last three months and almost doubled over a period of six months.
At this point, the technical features on the stock are indicating that the strength is probably going to be short-lived. Yet, buyers seem to have no doubt as they refer to the increasingly strong product roadmaps and the rising revenue streams resulting from AI implementation and cloud services.
Alphabet’s performance stands in contrast to many other tech names that have experienced volatility as investors reassess valuations.
Earnings Movers: HP Falls, Urban Outfitters and Dell Rise in After-Hours Trading
Corporate earnings jolted the after-hours market on Tuesday.
HP’s shares fell more than 5% after the company gave a disappointing outlook and announced plans to cut its workforce by 10%. Management said AI investments will reshape operations and reduce long-term costs. Restructuring activities alone will account for $1 billion of the savings the company expects over the next three years.
After the news, Urban Outfitters skyrocketed on the strength of its quarterly report that impressed Wall Street. The apparel retailer’s earnings and revenue both exceeded expectations, thus elevating the mood in the consumer discretionary area.
Dell Technologies rose nearly 3% despite posting weaker revenue for the quarter. The company forecast stronger performance ahead, driven by demand related to AI computing infrastructure.
As trading activity heads toward the final stretch of the month, investors are watching whether recent stabilization will lead to a broader recovery. With major indexes still nursing monthly losses and key economic decisions looming, sentiment remains cautiously balanced.
For now, markets appear to be catching their breath, waiting to see whether buyers will return in force or whether uncertainty will reassert pressure as the year winds down.