Market Rally Builds Ahead of Thanksgiving
U.S. stocks advanced on Wednesday, putting major indexes on track for a fourth straight day of gains heading into the Thanksgiving holiday. The Dow Jones Industrial Average rose 312 points, or 0.7%, while the S&P 500 and Nasdaq Composite each climbed by a similar margin.
Technology names helped drive the broader market higher. Oracle rallied 4%, Nvidia gained 1% after a recent pullback, and Microsoft also added 1%. Alphabet reached fresh record highs following reports that Meta Platforms is considering using Google’s TPU chips starting in 2027.
Tech Strength Supports Broader Market
The midweek gains follow a volatile but positive session on Tuesday, during which the Dow surged more than 660 points. Despite recent softness in some tech names, investor appetite for dips appears intact. Nvidia slipped more than 2.5% the previous day, but enthusiasm for artificial intelligence and semiconductor plays continues to underpin sentiment.
“Stocks are trying to stage a comeback from the past few weeks of declines, suggesting that dip buyers are still out in full force,” said Clark Bellin, president and chief investment officer of Bellwether Wealth. He noted that November’s pullback — about 4% from late October highs — remains well below the typical correction threshold of 10%.
Bellin added that while he expects equities to retest recent highs, the market lacks a clear upside catalyst heading into the final stretch of 2025.
Fed Expectations Shape Market Sentiment
Investor focus remains locked on monetary policy. Traders currently anticipate an 80%+ probability of a quarter-point rate cut from the Federal Reserve in December, according to the CME FedWatch tool. Signals from policymakers and upcoming economic data are likely to influence moves over the coming weeks.
Markets are also watching developments surrounding the next Fed chair. Treasury Secretary Scott Bessent told CNBC that there is a “very good chance” President Trump will announce his pick before Christmas. Bloomberg reported that Kevin Hassett, head of the White House National Economic Council, has emerged as a leading contender — a choice seen as favoring lower rates.
November Remains a Challenging Month
Despite this week’s rebound, November has been difficult for equities. All three major indexes are on track for monthly declines as concerns over stretched valuations weigh on high-growth tech names. The S&P 500 is down about 1% for the month, the Nasdaq Composite has dropped roughly 3%, and the Dow has slipped close to 1%.
U.S. markets will be closed Thursday for Thanksgiving, with a shortened session on Friday ending at 1 p.m. ET. Trading activity is typically muted during the holiday period, though investors will continue monitoring rate expectations and tech sector performance as key drivers into year end.
