US stocks clawed back modest gains on Friday following a turbulent Thursday session. The market opened choppy, with traders unsure whether the sell-off had further to run or if a rebound was in play.
Sentiment improved after New York Fed president John Williams indicated there is room for a rate cut in the “near term.” The remark sent December rate-cut bets soaring, with traders now pricing in roughly 75% odds, up from 40% on Thursday. The Fed remains deeply divided ahead of its final meeting of 2025.
By late afternoon in New York, the Nasdaq was up 1.5%, the S&P 500 had risen 1.4%, and the Dow Jones gained 1.4%.
Despite the rebound, November has been rough for Wall Street. The S&P 500 is on track for its worst month since 2008 amid growing concerns over an AI-driven market bubble. Nvidia’s impressive earnings on Wednesday failed to ease those worries, and all three major indices are set to post weekly losses, hitting their lowest levels since September.
Many traders argue Thursday’s sell-off cleared overleveraged positions, potentially setting the stage for stability, but caution remains elevated. Consumer sentiment also weakened in November, with the University of Michigan reporting a reading of 51, reflecting ongoing concerns over inflation and job security.
Cryptocurrencies continued to struggle, with Bitcoin falling to $81,000 before recovering slightly to $83,989 by 20:10 GMT. November is shaping up as the worst month for Bitcoin since the 2022 crypto collapse.
Across the Atlantic, the FTSE 100 closed flat after opening lower, with European investors cautious following Wall Street’s Thursday losses.
