U.S. stocks rallied on Friday as investors increased bets that the Federal Reserve will cut interest rates next month, while all three of the major indexes posted losses for the week amid concerns over lofty technology valuations.

The Nasdaq fell for a third straight week in its longest run of weekly losses since March. The index is now down 7% from its October high.

Market Snapshot

The Dow Jones Industrial Average rose 493.15 points, or 1.08%, to 46,245.41, the S&P 500 gained 64.23 points, or 0.98%, to 6,602.99 and the Nasdaq Composite gained 195.04 points, or 0.88%, to 22,273.08.

Market Movers

Nvidia - During the session, shares of Nvidia briefly jumped after sources familiar with the matter said the Trump administration is considering green-lighting sales of the company's H200 artificial intelligence chips to China. The stock ended down 1%, still well off of its lows of the session.

Alphabet, Microsoft - Alphabet, Google’s parent company, rose 3.5% and surpassed Microsoft as the third-largest U.S. company by market capitalization. If trends hold, Friday would mark the first time since Aug. 30, 2018, that Alphabet has closed with a higher market cap than Microsoft, according to Dow Jones Market Data. Microsoft shares fell 1.3%.

In terms of other major technology stocks, Apple rose 2%, Amazon rose 1.6%, Meta rose 0.9%, while Tesla fell 1.1%.

Intel, TSMC - Intel rose 2.6%. CEO Lip-Bu Tan downplayed rumors that a recent hire from Taiwan Semiconductor Manufacturing had taken company data from the Taiwanese chip manufacturer. Local media reported this week that Taiwanese officials were investigating Wei-Jen Lo, who joined Intel in October. U.S.-listed shares of TSMC were down 0.9%.

Robinhood, Strategy - Cryptocurrency stocks traded mixed as a brutal Bitcoin selloff raged on. Digital-asset exchangeCoinbase Globalrose 0.9%, trading platform Robinhood Markets was up 1%, and Strategy fell 3.7%. Strategy could be at risk of a further pullback if index provider MSCI drops digital asset treasury companiesfrom its indexes.

Eli Lilly - Eli Lilly’s market capitalization soared to $1 trillion on Friday as the stock rose 1.6%. It is the only drugmaker to reach that milestone and one of only 10 companies in total in the 13-digit club.

Oracle - Oracle continued its monthslong slump, falling 5.7%. The stock has succumbed to fears of a potential AI bubble in part because of thesizable debt loadOracleis accumulating to deliver on its eye-popping revenue forecasts. The stock was the worst performer in theS&P 500on Friday.

Intuit - Intuit gained 4% after the maker of TurboTax beat analysts’ estimates for earnings and revenue in its fiscal first quarter. The business software company aims to boost growth through artificial-intelligence products. Intuit’s earnings guidance looked a little soft, although Chief Financial Officer Sandeep Aujla told Barron’s that the company doesn’t raise its financial guidance before the company is finished with the crucial tax season, which brings in the most revenue for it each fiscal year.

Gap - Gap gained 8.2% after the clothing retailer reported that its third-quarter comparable-store sales had jumped 5% from a year ago; analysts had predicted a 3% increase. Profit was better than expected as well: Earnings came in at 62 cents a share, topping estimates of 59 cents.

Ross Stores - Ross Stores rose 8.4% after the off-price retailer raised its fiscal-year earnings guidance to a range of $6.38 to $6.46 a share, up from $6.08 to $6.21 previously. The guidance hike came the same day Walmart delivered a “beat-and-raise” quarter, helping to reassure investors that consumer spending remains robust. Walmart stock fell 1.7%.

BJ's Wholesale Club - BJ’s Wholesale Club rose 1.1% after the warehouse chain beat consensus estimates for adjusted earnings but fell short of forecasts for comparable-store revenue growth. The company lowered the high end of its full-year guidance for comparable-store sales growth, but raised its guidance range for adjusted earnings per share.

Elastic - Elastic plunged 14.7%. The Dutch-American software company reported better-than-expected fiscal second-quarter earnings and raised its fiscal-year revenue guidance. A deceleration in cloud revenue growth from the prior quarter combined with management’s upbeat commentary on new deals left some investors confused.

Veeva, Salesforce - It was a similar story for cloud software provider Veeva Systems, which tumbled 9.8% despite topping analysts’ earnings targets. Veeva said it expected to end up with 14 of the largest 20 biopharmaceutical companies as customers for its Vault CRM software, lower than previous expectations. Rival and former partner Salesforce will likely secure the other six. Salesforce was up 0.8%.

Enviri - Enviri stock rose 28.2% after the environmental services company announced an agreement to sell its Clean Earth division to French company Veolia Environnement for aggregate cash consideration of $3.04 billion.

Market News

Williams' Comments Boost Odds of a Fed Cut, Though Policy Hawks Remain Adamant

Comments from a top U.S. Federal Reserve official on Friday that interest rates can fall "in the near term" boosted the likelihood of a rate cut at the Fed's December 9-10 meeting, even as other policymakers insisted borrowing costs should remain steady for now to ensure inflation declines in coming months.

New York Fed President John Williams, a permanent voter on rate policy and vice chair of the rate-setting Federal Open Market Committee, said at a conference at the Central Bank of Chile that U.S. interest rates could fall without putting the Fed's inflation goal at risk, while helping guard against a slide in the job market.

"I view monetary policy as being modestly restrictive...Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral," Williams said in new remarks that led investors to put a nearly 60% chance of a quarter-point cut at the U.S. central bank's December meeting, reversing what had been strong conviction that the Fed would pause due to concerns about inflation.

US Mulls Letting Nvidia Sell H200 Chips to China, Sources Say

The Trump administration is considering greenlighting sales of Nvidia's H200 artificial intelligence chips to China, people familiar with the matter said, as a bilateral detente boosts prospects for exports of advanced U.S. technology to China.

The Commerce Department, which oversees U.S. export controls, is reviewing a change to its policy of barring sales of such chips to China, the sources said, stressing that plans could change.

The White House and the Commerce Department did not immediately respond to requests for comment. Nvidia did not comment directly on the review but said current regulation does not allow the company to offer a competitive AI data center chip in China, leaving that massive market to its rapidly growing foreign competitors.