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U.S. equities rebounded Friday after New York Federal Reserve President John Williams suggested the central bank could cut rates again in December.

The Dow Jones Industrial Average gained 225 points, or 0.5%. The S&P 500 gained 0.4%, while the Nasdaq Composite rose 0.2%.

The comments by a notable Fed member like Williams broke the equity market out of its artificial intelligence-stock slump and raised traders’ bets that the central bank would in fact cut next month for the third time this year. Fed funds futures traders are currently pricing in a more than 70% chance of a quarter percentage point cut, a spike from the 39.1% likelihood priced in the day before, according to the CME FedWatch tool.

“I view monetary policy as being modestly restrictive, although somewhat less so than before our recent actions,” Williams said in remarks for a speech in Santiago, Chile. “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, thereby maintaining the balance between the achievement of our two goals.”

AI stocks, which were headed for another tough session before Williams’ comments, cut their losses in premarket trading. Nvidia and AMD both turned positive. Investors hope easier monetary policy can revive a sluggish economy and justify historically high tech-stock valuations.

Stock benchmarks are coming off a brutal market reversal in the last session and are still headed for big losses this week. The Dow at one point on Thursday rose more than 700 points as investors cheered a blockbuster Nvidia fiscal third-quarter earnings report. The benchmark, along with the S&P 500 and Nasdaq Composite, ended the day sharply lower as the Nvidia rally fizzled and worries grew that the Fed would stand pat in December on rates.

The S&P 500 is still down more than 2% week to date, while the Dow has declined almost 3%. The Nasdaq has shed around 3%.

Some investors believe that Thursday’s market dip is not a sign of a deeper decline, but rather a normal pullback following strong gains earlier in the year.

“At the start of the month things were getting a tad frothy, but now with the past three weeks of frustration for investors, various signs of sentiment are flashing extreme levels of fear and worry. From a contrarian point of view, this was necessary to shake out any weak hands,” said Ryan Detrick, chief market strategist at Carson Group.

On Friday, bitcoin dropped nearly 2%, putting its week-to-date losses at around 10%. The cryptocurrency has fallen to levels not seen since April as investors have pulled back on their risk-taking in the market.

Eli Lilly reached a $1 trillion market capitalization on Friday, the first health-care company in the world to join the exclusive club dominated by tech firms. 

Eli Lilly briefly hit the $1 trillion mark in morning trading before retreating. It was last trading around $1,048 a share.

The company’s stock has climbed more than 36% this year as investors applaud the gains it has made over chief rival Novo Nordisk in the GLP-1 drug space. The Indianapolis, Indiana-based drugmaker’s stock has been riding the skyrocketing popularity of its weight loss injection Zepbound and diabetes treatment Mounjaro. Demand is only expected to grow as both approvals for treatments’ uses and insurance coverage expand.

Eli Lilly will likely remain a dominant player in the weight loss drug market, which some analysts believe could be worth more than $150 billion by the early 2030s.

Eli Lilly, a pharmaceutical chemist and Union veteran of the U.S. Civil War, founded his namesake company in 1876. It has long been at the forefront of the diabetes treatment space, introducing the world’s first commercial insulin in 1923. 

Eli Lilly became a publicly traded company on the New York Stock Exchange by 1952, and for decades relied on a slate of widely successful products to drive much of its profits and revenue. They include its insulins, the antidepressant pill Prozac and the earliest polio vaccine. 

Eli Lilly hit the jackpot with the May 2022 approval of tirzepatide for diabetes, which is sold as Mounjaro. It started to compete with Novo Nordisk’s diabetes injection Ozempic, which had entered the market a few years earlier. 

But Eli Lilly brought a new way to treat diabetes and eventually, obesity. Tirzepatide works by imitating two hormones produced in the gut called GLP-1 and GIP. GLP-1 helps reduce food intake and appetite. GIP, which also suppresses appetite, may also improve how the body breaks down sugar and fat.

Meanwhile, Novo Nordisk’s semaglutide, the active ingredient in Ozempic and its weight loss drug Wegovy, only targets GLP-1. 

Mounjaro achieved “blockbuster” status – meaning it generated more than $1 billion in annual sales – during its first full year on the market.

Eli Lilly then won approval for tirzepatide as a treatment for obesity, which is sold as Zepbound and now competes with Novo Nordisk’s Wegovy.