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flag U.S. stocks rose Tuesday as investors bet the Fed may cut rates in early 2026 due to slowing growth and cooling inflation.

flag U.S. stock markets rose on Tuesday, driven by renewed optimism that the Federal Reserve may cut interest rates in early 2026 amid signs of slowing economic growth and cooling inflation. flag Investors welcomed data suggesting the economy is softening, boosting hopes for a rate cut. flag The S&P 500 and Nasdaq posted gains, while the Dow Jones Industrial Average edged higher. flag Wall Street ended its final trading day before Christmas on a positive note, with tech and growth stocks leading the rally.

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