On a jittery Tuesday in early December, Wall Street found its footing. The Dow climbed 185 points, the S&P 500 added 0.25%, and the Nasdaq advanced 0.59%, reversing part of Monday’s stumble as bitcoin bounced back above $90,000 and AI-linked tech names steadied sentiment. The session wasn’t smooth—major indexes dipped intraday—but the close in the green signaled investors are still willing to buy dips when catalysts appear.
Bitcoin’s bounce and AI tailwinds
The day’s spark came from crypto and semis. Bitcoin rose around 7%, recouping some of its prior losses and nudging risk appetite higher. On the equity side, Nvidia ticked up nearly 1%, while Credo Technology soared to an all-time high, jumping on a standout earnings beat and upbeat guidance tied to the AI data-center buildout. The AI theme kept broad tech resilient, even as investors grappled with questions about inflation persistence and whether lofty valuations can be justified by 2026 earnings trajectories.
Loop Capital’s take on Nvidia’s $2 billion equity stake in Synopsys framed the partnership as validation of a shift toward GPU-based compute for EDA and simulation software—another signal that AI infrastructure remains a secular force, despite occasional air pockets.
The rate cut wager and December seasonality
Beyond the day’s tape, the macro narrative is edging toward optimism. Markets are pricing roughly an 89% chance that the Federal Reserve will cut rates at next week’s policy meeting, a sharp rise versus mid-November expectations. As Doug Beath of Wells Fargo noted, attention is tilting away from policy uncertainty toward better-than-expected earnings projections for Q4 and calendar 2026, and a growth reacceleration later next year. Seasonals add a tailwind: the S&P 500 has averaged more than a 1% gain in December since 1950, making it the benchmark’s third-best month, according to the Stock Trader’s Almanac.
If Monday’s pullback was a pause, Tuesday’s action hinted at the familiar “Santa rally” debate—less euphoria than a pragmatic recalibration, as investors position into potential easing and resilient earnings.
Big movers: aerospace, electrics, and instant groceries
Winners and warnings dotted the board. Boeing jumped about 9%, on pace for its best day since April, after its CFO said deliveries of the 737 and 787 should be higher in 2026; a fresh $104.4 million U.S. Navy repair contract and constructive free cash flow guidance added lift. In the electric aviation niche, Beta Technologies rose more than 9% after Eve Air Mobility announced an up to $1 billion motors deal over 10 years, underscoring the capital commitments flowing into next-gen air taxis.
On the retail-tech front, Instacart’s parent Maplebear fell over 2% as Amazon began testing ultra-fast grocery delivery (≈30 minutes) in Seattle and Philadelphia—an aggressive timeline that could reshape consumer expectations for convenience. Logistics player XPO slipped more than 6% on November tonnage declines, a reminder that transportation demand remains uneven into year-end.
Earnings beats and analyst calls
The results tape delivered fireworks. MongoDB leapt 23% after posting a robust earnings and revenue beat and raising full-year guidance, reaffirming momentum in developer-centric data platforms. Credo Technology, riding the AI interconnect wave, beat on EPS and revenue and guided above consensus, prompting multiple analyst price target hikes while the stock has surged 155% year-to-date. Cloudflare climbed more than 2% after Barclays initiated with an overweight rating and a $235 price target, citing the company’s broadening product “acts” and medium-term growth targets of 27–30% through FY28.
In healthcare tools, Morgan Stanley tagged Danaher with an overweight and $270 target, highlighting underappreciated innovation and favorable valuation versus peers. And in autos, Michael Burry pressed a contrarian view, arguing Tesla’s market cap is “ridiculously overvalued” when stock-based compensation dilution is fully accounted for—fuel for the ongoing debate over tech multiples in a high-cost capital world.
Highs, lows, and what’s next
Market breadth showed pockets of strength. Nine S&P 500 constituents notched new 52-week highs, including Apple, Analog Devices, Applied Materials, Intel, and Cummins, while only Procter & Gamble and Linde marked fresh lows. The juxtaposition of mega-cap resilience with selective weakness captures the current mood: constructive, but choosy.
As traders look to December’s playbook, the path forward hinges on the Fed’s next step, corporate guidance into 2026, and whether AI investment returns meet the lofty expectations embedded in today’s prices. If Tuesday is any indication, risk appetite can re-emerge swiftly when macro risks abate and earnings deliver. The rally may be tempered, but it’s alive—and for now, the bid is back in tech and crypto.
