# Stock Rally on Dovish Economic Data: Fed Rate Cut Odds Hit 80%

US markets got a lift Tuesday as economic data came in softer than expected, fueling bets on a December Fed rate cut.

**Market Snapshot:**
- S&P 500 +0.91%, Dow +1.43%, Nasdaq 100 +0.58%
- 10-year Treasury yield dropped to 3.99% (3.5-week low)
- Rate cut odds for Dec 9-10 FOMC jump to 80%

**What Moved the Needle:**
Retail sales, core PPI, and consumer confidence all printed weaker than expected. ADP's private payroll data showed a -13.5K weekly decline, signaling labor market softening. Meanwhile, inflation expectations cooled—the 10-year breakeven rate hit a 7.25-month low of 2.212%.

**The Catch:**
Nvidia tanked -2% after reports of Meta snapping up Google's AI chips (TPUs), suggesting Google's finally making a dent in Nvidia's AI dominance. The Magnificent Seven (minus Nvidia) bounced back—Meta +3%, Alphabet & Amazon +1%+.

**Bonus Winners:**
Home builders rallied hard as lower yields boost housing demand—DR Horton and Toll Brothers each up 6%+. Kohl's exploded +42% on beat earnings and raised guidance. Symbotic shot +39% on strong Q4 revenue forecast.

**Coming This Week:**
Unemployment claims, Chicago PMI, and the Fed Beige Book could provide more direction. Market now pricing in a quarter-point rate cut next month.