03:53 PM EST, 11/21/2025 (MT Newswires) -- US equity indexes rebounded ahead of Friday's close as the odds of an interest-rate cut at the upcoming December Federal Reserve meeting almost doubled after remarks by a Fed official.

The Nasdaq Composite jumped 1.3% to 22,360.2, with the S&P 500 up 1.2% to 6,619.4 and the Dow Jones Industrial Average 1.2% higher at 46,322.7. All sectors rose, led by communication services, consumer discretionary, and health care.

New York Fed President John Williams said Friday he sees room for "further adjustment" to rates in the near term. His statement helped investors in interpreting how the Fed would view the September nonfarm payrolls. That report showed job additions soared 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 70% on Friday, up from 39% the previous day, according to the CME FedWatch Tool.

Most Treasury yields fell, with the 10-year down 4.1 basis points to 4.06% and the two-year lower by 4.4 basis points to 3.51%.

The US dollar depreciated 1.1% against the Japanese yen to 156.4.

The CBOE Volatility Index sank 11% to 23.68, retreating from its highest since April.