US stocks rise as Fed official gives investors more rate-cut optimism

• US stocks climbed Tuesday, with fresh Fed comments fueling hopes of rate cuts.
• Big Tech has led stocks higher over recent weeks, and the Dow Jones hit a record high Monday.
• All three major indexes remain on track for a positive month.

US stocks climbed on Tuesday, following Monday's session that saw the Dow Jones hit a new record high.

San Francisco Fed President Mary Daly helped fuel the rally, as she told the Wall Street Journal that it's appropriate for the central bank to begin considering rate cuts in 2024. 

She noted that maintaining a healthy labor market was key, and the Fed must keep paying attention to that part of the equation.

"There is more work to do, and at this point, that work includes not only focusing on bringing inflation down to 2%," Daly said. "But also recognizing that we want to continue to do this gently, with as few disruptions to the labor market as possible."

Over recent weeks, stocks have soared and bond yields have plunged thanks to investor optimism for impending rate cuts from the Federal Reserve. Each of the major averages are on pace to finish December in the green. 

Here's where US indexes stood as the market opened at 9:30 a.m. on Tuesday: 

• S&P 500: 4,748.95, up 0.18%

• Dow Jones Industrial Average: 37,365.71, up 0.16% (59.69 points)

• Nasdaq Composite: 14,952.26, up 0.32%

Here's what else is going on: 

• BlackRock bond guru warned not to put all your faith in the Fed with a March 2024 rate cut.
• Investors will swap dollars for stocks if interest rates fall next year, a strategist said.
• The Fed could guide small-cap stocks toward a "sweet spot" as it gets ready to slash rates, a Morgan Stanley bear said.

In commodities, bonds, and crypto: 

• Oil prices climbed, with West Texas Intermediate up 0.61% to $72.91 a barrel. Brent crude, the international benchmark, moved higher 0.61% to $78.43 a barrel.
• Gold edged higher 0.21% to $2,044.90 per ounce.
• The 10-year yield moved lower 3 basis points to hover at 3.924%.
• Bitcoin climbed 1.94% to $42,662.