Market Pulse: Risk Appetite Returns
Equities Rebound as Risk Signals Turn Green
U.S. equities regained their footing on Tuesday as investors cautiously rotated back into riskier assets. The $NASDAQ(.IXIC)$ rose 0.6%, outperforming the $S&P 500(.SPX)$ (+0.3%) and the Dow Jones (+0.4%), reversing the hesitant tone that marked the start of December.
Index
The session’s leadership came from the higher-beta corners of the market: tech, momentum, and risk-focused ETFs. Meanwhile, traditionally defensive segments such as value, dividends, and low volatility lagged, underscoring a renewed, though still fragile, risk appetite.
The shift aligned with broader sentiment improvements following last week’s run-up and a temporary pause early this week. After November’s surge, traders appear more selective, awaiting confirmation from macro data and upcoming central bank signals.
Stocks
Crypto Stabilization Sparks Broader Risk Rally
A 6% rebound in Bitcoin, pushing the token back above $90,000, played a meaningful psychological role in Tuesday's equity rally.
Crypto’s stabilization helped re-ignite interest in high-growth technology plays, with broad follow-through across semiconductors and AI-linked names.
Tech Momentum Builds: Strong Earnings Fuel AI Trade
The artificial intelligence theme continues to dominate equity leadership. Better-than-expected results from $Credo Technology Group Holding Ltd(CRDO)$ Credo Technology and $MongoDB Inc.(MDB)$ MongoDB ignited a rally across the semiconductor ecosystem. The iShares Semiconductor ETF jumped 2%, helping reestablish semis as one of the market’s strongest performing segments.
Within megacap tech, six of the Magnificent Seven rallied. Only $Tesla Motors(TSLA)$ declined on the day.
Apple’s Comeback: Closing In on Nvidia
Apple’s Comeback: Closing In on Nvidia
$Apple(AAPL)$ shares rose 1.1%, marking their 14th record close of the year and extending their longest winning streak since early May. With a market capitalization near $4.25 trillion, Apple is now within $200 billion of Nvidia, once again threatening to reclaim the title of the world’s largest public company.
The rally has been driven less by AI headlines and more by improving fundamentals, specifically, a sharp acceleration in iPhone 17 sales, which appear to have returned to double-digit growth, according to industry trackers such as Counterpoint.
Notably, Apple’s surge has continued despite the announced retirement of its AI chief, John Giannandrea, evidence that investors are looking past leadership turnover and focusing on product-cycle momentum.
Sector and Stock Highlights
-
Top Performer: Boeing +10.2%
-
Biggest Decliner: Block -6.6%
-
Best Sector: Industrials +0.9%
-
Weakest Sector: Energy -1.3%
The rotation into cyclicals and industrial names suggests a market increasingly comfortable with near-term economic resilience, even as investors await key macro data later this week.
Looking Ahead
The next 48 hours bring a critical set of catalysts, with earnings on deck from Salesforce, Snowflake, Dollar Tree, and Five Below. On the macro front, markets will parse:
-
ADP’s November employment data
-
ISM Services PMI
-
Import/export price data from the BLS
With the Federal Reserve meeting just days away, each new datapoint may reshape expectations around the timing and size of future policy moves.
Conclusion: A Tentative but Rising Confidence
Tuesday’s session reinforced a growing pattern: when crypto stabilizes, and tech earnings surprise to the upside, risk sentiment tends to snap back quickly. While investors remain cautious after a strong November, the renewed strength in semiconductors, megacap tech, and consumer-driven platforms such as Apple suggests underlying confidence is improving.
Still, with the Fed’s rate decision imminent, the durability of this rally depends on whether macro conditions align with the market’s optimistic year-end hopes. For now, momentum is turning upward, but the real test arrives next week…
If you found this summary helpful, be sure to like and subscribe to stay informed on the economic trends shaping markets.
This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
