Stocks Head for Third Day of Gains; Bonds Rally: Markets Wrap

US stocks pushed higher, with traders reloading wagers on an interest-rate cut next month while the latest AI advances drove Big Tech valuations.

The S&P 500 rose 0.8% after swinging between modest gains and losses earlier. The Nasdaq 100pared its 1.3% drop to climb 0.4% later in the session. Economic data out of the US on Tuesday further cemented bets that the Federal Reserve will cut interest rates next month. That optimism had pushed stocks higher even on Monday.

The US 10-year Treasury yield fell below 4% after White House National Economic Council Director Kevin Hassett emerged as the ...