US stocks moved higher on Wednesday, notching their best four-day streak since May heading into the Thanksgiving holiday as Wall Street optimism grew over the odds of an interest-rate cut next month.
The Dow Jones Industrial Average (^DJI) rose 0.7%, over 300 points, while the S&P 500 (^GSPC) also moved up 0.7%. The tech-heavy Nasdaq Composite (^IXIC) added nearly 0.8%, following Tuesday’s sharp gains.
Tech names have again helped to buoy the market. Alphabet (GOOG) shares slipped from record highs while Nvidia (NVDA) popped more than 1%, with both tech names reversing course from the previous session as competition within the AI chip space grew. Microsoft (MSFT), Tesla (TSLA), and Apple (AAPL) also rose.
At the same time, investors continue to closely watch for influences on the Federal Reserve’s next policy move, given the US shutdown-driven data drought. The central bank’s Beige Book out Wednesday will shed light on how the US economy is performing region-by-region. It will be scoured for clues to consumer spending and the labor market as the Fed gets ready for its meeting in two weeks.
Markets are pricing in an over 80% probability of a December quarter-point rate cut after delayed September readings on retail sales and wholesale inflation fell short. Initial jobless claims unexpectedly fell last week to their lowest since April, Department of Labor data out Wednesday showed.
Meanwhile, palace intrigue at the central bank continues to pick up steam, with five finalists on President Trump’s shortlist to take Chair Jerome Powell’s place next year. Kevin Hassett, the White House’s top economic adviser, has emerged as the frontrunner as the search enters its final weeks.
Markets are closed Thursday in observance of Thanksgiving, and open until 1 p.m. on Friday.
