01:41 PM EST, 11/21/2025 (MT Newswires) -- US equity indexes rose after midday Friday, rebounding from a sharp reversal in the previous session, as New York Fed President John Williams' dovish tilt on the December monetary policy meeting almost doubled the odds of an interest-rate cut.

The Nasdaq Composite climbed 0.7% to 22,224.1, with the S&P 500 up 0.9% to 6,597.5 and the Dow Jones Industrial Average 1.1% higher at 46,232.9. All sectors gained, led by materials, health care, and consumer discretionary.

Williams said Friday he sees room for "further adjustment" to rates in the near term. His comments helped in interpreting how the Federal Reserve would view the September nonfarm payrolls. The report showed that the number of jobs added rose by more than twice the expected amount, and the unemployment rate came in higher than anticipated, exacerbating the divide between policy hawks and doves.

The dovish comments from Williams, reportedly a close ally of Fed Chair Jerome Powell, could align with those of the central bank chief and, therefore, be influential in shaping consensus within the Federal Open Market Committee next month. Unlike most regional presidents who rotate, the New York Fed president is a permanent voter on the FOMC.

The likelihood of a 25-basis-point cut in interest rates in December catapulted to about 72% on Friday, up from 39% the previous day, according to the CME FedWatch Tool. The remaining probability is that the target rate for fed funds will remain unchanged in the 3.75% to 4% range.

Meanwhile, in economic news, the November flash reading of manufacturing conditions from S&P Global fell to a four-month low of 51.9 from 52.5 in October, compared with an expected increase to 52.0 in a survey compiled by Bloomberg. The index for service conditions rose to a four-month high of 55.0 from 54.8, compared with expectations for a decline to 54.6. A reading above 50 indicates expansion.

The University of Michigan consumer sentiment index was revised higher to 51.0 for November from 50.3 in the preliminary estimate, versus the 50.6 outlook in a survey compiled by Bloomberg. That print was still below the final reading of 53.6 in October.

"After the federal shutdown ended, sentiment lifted slightly from its mid-month reading," Michigan said. "However, consumers remain frustrated about the persistence of high prices and weakening incomes."

Michigan survey respondents expect a 4.5% inflation rate over the next year and 3.4% annual inflation over the next five years, down from 4.6% and 3.9%, respectively, in October.

Most Treasury yields fell, with the 10-year down 3.5 basis points to 4.07% and the two-year lower by 3.6 basis points to 3.52%.

The US dollar depreciated 0.6% against the Japanese yen to 156.5.

The CBOE Volatility Index dropped 7.4% to 24.44, retreating from its highest since April.

Oracle (ORCL) shares dropped 6.4%, the worst performer on the S&P 500, amid mounting concern over risk related to AI capital expenditure. The company's 5-year credit default swaps, which reflect the cost of insuring debt for investors, have surged past 110 basis points, the highest in three years, according to a report from FXStreet.

Earlier this month, Bloomberg reported that as many as 20 banks are providing $18 billion in funding to help fund the construction of a data center tied to Oracle in New Mexico. Oracle's total debt-to-equity ratio was almost 533% as of May, according to data compiled by FactSet.

Ross Stores ( ROST ) jumped 7.2%, the top gainer on the S&P 500 and the Nasdaq, after the discount retailer announced an unexpected increase in its fiscal third-quarter earnings.

In energy markets, West Texas Intermediate crude oil futures dived 2% to $57.85 a barrel.