05:03 PM EST, 11/25/2025 (MT Newswires) -- US equity indexes rose on Tuesday as the odds of the third consecutive interest-rate cut in December remained elevated following a worsening in consumer confidence, retail sales, and labor market data.

The Dow Jones Industrial Average jumped 1.4% to 47,112.45, with the S&P 500 up 0.9% to 6,765.88 and the Nasdaq Composite 0.7% higher at 23,025.59 in a broad-based rally led by healthcare, consumer discretionary, and communication services. Technology was off session lows, closing little changed.

The Conference Board's measure of consumer confidence declined to 88.7 in November from 95.5 in October, compared with 93.3 expected in a survey compiled by Bloomberg. The US Census Bureau's retail sales report showed a 0.2% increase in September, below a revised 0.6% jump in August and consensus for a 0.4% gain.

ADP's weekly measure of private payrolls showed a preliminary average decrease of 13,500 jobs in the four weeks ending on Nov. 8.

The producer price index rose 0.3% on a seasonally adjusted basis in September, in line with the Bloomberg-compiled forecast. The print, however, showed a rebound from the 0.1% deceleration in August, the Bureau of Labor Statistics reported Tuesday. After excluding food and energy prices, core PPI grew 0.1%, below the 0.2% acceleration expected.

"Downbeat economic data is delivering gains to stock and bond bulls alike as weaker-than-expected retail sales and consumer confidence numbers coincide with accelerating job losses and rising odds of a December Fed cut as a result," Jose Torres, senior economist at Interactive Brokers, said in a note Tuesday.

Markets are pricing in an 83% probability that the Fed will reduce its benchmark lending rate by a quarter percentage point on Dec. 10, according to the CME FedWatch tool. Most US Treasury yields fell, with the 10-year down 3.6 basis points to 4%, the lowest for this month, and the two-year yield slid three basis points to 3.46%. Gold futures climbed 0.8% to $4,126.72.

Meanwhile, White House National Economic Council Director Kevin Hassett is perceived by advisers and allies of President Donald Trump as the frontrunner to be the next Fed chair, Bloomberg reported, citing people familiar with the matter.

With Hassett, Trump would have a close ally whom the president knows well and trusts installed at the independent central bank, the people told Bloomberg, speaking on the condition of anonymity. Hassett is seen as someone who would bring the president's approach to interest-rate cutting to the Fed, which Trump has long wanted to control, some of the people told Bloomberg.

The CBOE Volatility Index, also known as a fear gauge, slumped 9.6% to 18.56 intraday.

In company news, shares of semiconductor manufacturer Nvidia ( NVDA ) fell 2.6%, off session lows, after The Information reported Meta Platforms ( META ) is contemplating using artificial intelligence chips designed by Alphabet's (GOOG, GOOGL) Google ( GOOG ) unit. Shares of Advanced Micro Devices (AMD), also a chipmaker, sank 7.4%, the worst performer on the S&P 500 and the Nasdaq.

West Texas Intermediate crude oil futures slumped 1.4% to $57.99 a barrel.

Ukraine agreed to a 19-point peace plan negotiated with the United States that did not include Russian demands for a limit on the size of Ukraine's military or an amnesty for war crimes, ABC News reported, citing an unnamed US official. However, the agency said some details are still being negotiated. Russia has yet to comment on the report.