The US stock market rose with the S&P 500 and Nasdaq Composite closing at their highest levels for the second consecutive day.
The rise was also driven by expectations that the Federal Reserve (Fed) is getting closer to entering a phase of monetary easing.
According to CME's FedWatch, traders are now fully pricing in a 25 basis point interest rate cut with the central bank last cutting borrowing costs in December last year.
US Treasury Secretary Scott Bessent also expected the possibility of an aggressive half-point interest rate cut following the recent weak employment data.
Chicago Fed President Austan Goolsbee said the US central bank is assessing whether tariffs will temporarily or permanently increase inflation to determine the timing of the interest rate cut.
The Dow Jones Industrial Average rose 1.04% to 463.66 points, the S&P 500 rose 0.32% to 20.82 points, while the Nasdaq Composite rose 0.14% to 31.24 points.
Meanwhile, the market also showed weakness in several technology stocks after recording stronger gains in the previous session.
Several major technology stocks such as Nvidia, Alphabet and Microsoft, which belong to the "Magnificent Seven" group, closed lower as investors looked for new growth drivers.
Apple shares rose 1.6% after Bloomberg News reported the company's plans to expand its business into AI-powered robots, home security and smart displays.
Trading volume on US exchanges recorded 16.9 billion compared to an average of $18.3 billion over the full 20 trading days.
