The Dow Jones Industrial Average (DJIA) staged a strong rebound on Friday, climbing more than 700 points and injecting optimism into an otherwise bearish trading week. Investor sentiment improved as key Federal Reserve (Fed) officials signaled greater openness to an upcoming interest rate cut, while fresh reports suggested the Trump administration may roll back additional tech trade restrictions targeting China.
Despite Friday Upswing, Indexes Still on the Defensive
Despite Friday’s rally, the Dow remains in the red for the week, down 1.33% from last Friday’s close and stuck in defensive technical territory near the 46,000 level.
The index has closed lower in five of the past six sessions, and Friday’s recovery pushes the DJIA into a challenging technical zone marked by former support levels that could now act as resistance, along with key moving averages that may cap further upside.
December Fed Rate Cut Back on the Table
New York Fed President John Williams said on Friday that there is a strong likelihood of a “further adjustment in the near term,” which markets interpreted as renewed support for another rate cut at the December 10 meeting.
Diverging views within the Federal Open Market Committee (FOMC) have widened in recent months, giving traders a broad spectrum of policy signals to digest.
According to the CME FedWatch Tool, rate markets are now pricing in a 70% probability of a third consecutive 25-basis-point cut in December—up sharply from about 40% as of Thursday afternoon.
Meanwhile, the Trump administration has rolled back several trade policies and tariffs over the past week. New reports suggest officials are considering reversing restrictions on sales of AI-focused chips to China—a move that would enable Nvidia (NVDA) to offload more of its high-value H200-series GPUs, which sell for around $30,000 and currently account for a growing share of the company’s swelling inventory.
Consumers Tilt Back Toward Hope
University of Michigan (UoM) consumer sentiment data also surprised to the upside, adding support to Friday’s risk-on mood.
Both the UoM Consumer Sentiment Index and Expectations Index rose more than anticipated for November, while 1-year and 5-year inflation expectations eased, offering markets a welcome shift in tone after a week dominated by caution.
