Stocks rose on Wednesday, giving major indexes a fourth day of gains ahead of Thanksgiving.
The Dow Jones Industrial Average rose by 405 points, or 0.9%. The S&P 500 rose 0.9%, while the Nasdaq Composite rose 1%.
The broader market’s gains were boosted by artificial intelligence player Oracle, which jumped more than 4% after Deutsche Bank reaffirmed its bullish stance on the name. Shares of Nvidia rose more than 1%, recovering from a recent decline, while Microsoft, a member of the “Magnificent Seven”, traded about 2% higher.
“It’s simply a return to the risk-averse action we’ve had over the last seven or two, which was completely normal,” said Eric Diton, president and CEO of The Wealth Alliance. “Thanksgiving is generally a strong week in the markets. Everybody’s feeling good.”
The S&P 500 and Dow Jones are headed for their best weeks since late June, with the broader index up more than 3% and the Dow up nearly 3% since the start of the week. The tech-heavy Nasdaq rallied more than 4% this week, tracking its best week since mid-May.
“We’re also getting to the best part of the year for stocks – from November to April,” he continued. “It’s hard not to stay optimistic here.”
Stocks had a winning session on Tuesday despite choppy trading. The Dow Jones, which includes 30 stocks, recorded its third consecutive positive day, along with the S&P 500 and the Nasdaq, SEEbiz writes. Several tech stocks also rose to lift the broader market. Alphabet hit new record highs after reports that Meta Platforms is considering using Google parent company TPU chips in 2027. Chipmaker Nvidia, however, lost more than 2.5%.
Investors continue to watch for catalysts that could influence the Federal Reserve’s next interest rate move. Traders are counting on a more than 80% chance of a quarter-percentage-point rate cut by the Fed in December, according to CME’s FedWatch tool.
“If the Fed disappoints, you could have a selloff,” Deaton told CNBC. “I don’t think he will.”
Taking a step back, November proved to be a tough month for stocks. While the three major indexes pared monthly losses with gains this week, all are still tracking a losing month as concerns over elevated valuations dampened momentum behind some high-flying tech stocks. The S&P 500 and Dow are marginally lower for the month, while the Nasdaq is down about 2%.
The stock market will be closed Thursday for Thanksgiving. Trading will resume in a shortened session on Friday, when the market will close at 1 pm ET.
