Stocks finished the session higher as Bitcoin rebounded above $90,000 and tech shares surged

Stocks rose on Tuesday, lifted by a rebound in bitcoin and strength in technology shares, helping traders claw back some of Monday’s losses.

The Dow Jones Industrial Average added 185.13 points, or 0.39%, to close at 47,474.46. The S&P 500 gained 0.25% to finish at 6,829.37, while the Nasdaq Composite advanced 0.59% to 23,413.67.

Bitcoin jumped roughly 7%, recovering part of its prior-day decline. AI-linked tech names also supported the broader market, with Nvidia up nearly 1% and Credo Technology surging 10% to a record high after reporting stronger-than-expected results.

It was a choppy session, with the S&P 500 and Dow briefly slipping into negative territory and the Nasdaq nearly flat before all three moved higher again.

The major indexes started the week with losses on Monday, breaking a five-session winning streak. Risk-off sentiment driven by concerns over sticky inflation, stretched valuations and questions about AI-related returns has weighed on the recent bull run.

Despite a mixed November, investors are watching for potential catalysts that could fuel a year-end rally. Traders are increasingly confident the Federal Reserve will cut rates at next week’s meeting, with markets pricing in about an 89% chance of a reduction — sharply higher than mid-November odds, according to the CME FedWatch tool.

Seasonality also favors the market: the S&P 500 has historically gained more than 1% in December, making it the index’s third-strongest month since 1950, according to the Stock Trader’s Almanac.