UPDATE: Wall Street’s main indexes are surging today, marking a fourth consecutive session of gains as investors ramp up bets that the Federal Reserve will cut interest rates this December. The S&P 500 and Nasdaq have both reached two-week highs, while the Dow Jones Industrial Average is nearing its own peak.
Fresh economic data released earlier today reveals that new claims for US jobless benefits have dropped to 216,000 for the week ending November 22, well below the anticipated 225,000. This information fuels optimism as traders now assign an 84.9 percent chance of a 25-basis-point rate cut next month, nearly doubling last week’s odds, according to CME’s FedWatch tool.
“The economy isn’t slipping into recession but it’s weak enough to allow the Fed another cut,” said Kim Forrest, Chief Investment Officer at Bokeh Capital Partners. “There’s still a high amount of people that are on unemployment, so this gives the Fed headroom to be able to cut some more.”
As the market gears up ahead of the busy holiday shopping season—kicking off with Thanksgiving tomorrow, followed by Black Friday and Cyber Monday—investors are keeping a close eye on consumer trends. Retail forecasts are mixed, with the National Retail Federation predicting holiday sales will exceed $1 trillion for the first time, despite economic pressures from rising tariffs and layoffs.
In early trading on Wednesday, the Dow gained 280.84 points, or 0.60 percent, to 47,393.29. The S&P 500 climbed 39.66 points, or 0.58 percent, to 6,804.90, and the Nasdaq rose 163.29 points, or 0.71 percent, reaching 23,188.89.
The positive momentum is further supported by a 2.3 percent rise in Dell, as the company reported strong demand for its servers in AI data centers, exceeding quarterly forecasts. However, not all stocks performed well; HP saw a 2.3 percent drop following disappointing profit forecasts and announced job cuts.
Looking ahead, all eyes will be on the Fed’s upcoming Beige Book report, expected later today, which will provide insight into economic conditions. Additionally, speculation is rising over the potential appointment of Kevin Hassett as the next Fed Chair, a development that could influence monetary policy significantly.
Advancing issues outnumbered decliners by a ratio of 2.46-to-1 on the NYSE and 1.93-to-1 on the Nasdaq. The S&P 500 recorded 14 new 52-week highs with no new lows, while the Nasdaq marked 60 new highs and 23 new lows.
As Wall Street recovers from a recent tech-led sell-off, traders remain vigilant amid ongoing economic uncertainties. The holiday trading period is crucial for retailers, who are facing challenges from both consumer demand and economic pressures. Share this urgent update to stay informed on the latest market trends!
