US stock indices recorded gains for the fourth consecutive session at the close of trading on Wednesday, November 26, ahead of the Thanksgiving holiday on Thursday, amid bets on artificial intelligence trade and hopes for interest rate cuts.
The Dow Jones Industrial Average gained 314 points, or 0.6%.
US stock indices recorded gains for the fourth consecutive session at the close of trading on Wednesday, November 26, ahead of the Thanksgiving holiday on Thursday, amid bets on artificial intelligence trade and hopes for interest rate cuts.
The Dow Jones Industrial Average gained 314 points, or 0.6%.
The Standard & Poor's 500 index rose 0.6% to close at 6,812.61 points.
Meanwhile, the Nasdaq Composite Index rose 8% at the close of the session, recording 23,214.69 points.
The overall market gains boosted shares of artificial intelligence firm Oracle, which rose 4%. Nvidia shares climbed 1%, recovering from recent declines, while Microsoft, a member of the Big 7 program, also saw its shares rise 1%.
The three major U.S. stock indexes closed higher on Tuesday after a volatile trading session. The Dow Jones Industrial Average, composed of 30 stocks, closed up more than 660 points, or 1.4%, marking its third consecutive day of gains. Many technology stocks also rose, boosting the broader market.
AI race
Alphabet set new record highs on the back of a report that Meta Platforms is considering using Google's parent company's TPU chips in 2027.
Meanwhile, shares of chipmaker Nvidia fell by more than 2.5%.
Clark Bellen, president and chief investment officer at Bellwether Wealth, stated: “Stocks are attempting a recovery after the declines of the past few weeks, indicating that buyers on the dip are still very much in action.” He added: “The market’s November pullback has only reached about 4% from its late October high, well below the typical 10% correction threshold.”
Shares of Nvidia and Alphabet have fluctuated in recent days as the latter enters the artificial intelligence (AI) field. While some market observers question whether Google's parent company will lead the AI sector, Nvidia has attempted to reassure investors of its dominance in the field.
Alphabet shares surged to an all-time high yesterday, in the latest sign of trader enthusiasm following the tech giant's release of the improved Gemini 3 model last week.
Shares in Google's parent company also appeared to receive a boost from a report that Meta is considering buying the company's artificial intelligence chips.
Meanwhile, Nvidia shares closed down more than 2% yesterday.
The AI leader defended its technology following the Meta report, saying in a statement on social media that it is a generation ahead of the industry.
While Nvidia stated that it is a supplier to Google, the company asserted that its chips are more powerful than those of its competitors.
Alphabet shares rose more than 1% in pre-market trading. Meanwhile, Nvidia shares continued their decline this morning.
In the field of artificial intelligence, Dell announced yesterday that it expects strong performance in the last quarter thanks to AI sales.
Interest rate cut
Investors continue to monitor the catalysts that could influence the Federal Reserve's next move on interest rates. Traders are pricing in roughly an 85% probability of a quarter-point rate cut by the Fed in December, according to the CME FedWatch tool.
Treasury Secretary Scott Bisent told CNBC earlier on Tuesday that there was a very good chance Trump would make an announcement before Christmas regarding the next Federal Reserve chair. While he stated that he was interviewing candidates, speculation pointed to Kevin Hassett, director of the National Economic Council at the White House. Hassett is seen as more likely to push for lower interest rates.
Despite a slight pullback, November was a tough month for stocks. While the three major indexes pared their monthly losses with gains this week, they are all still on track for a losing month, as concerns about high valuations dampened the momentum of some high-performing technology stocks. The S&P 500 and Dow Jones Industrial Average both declined slightly during the month, while the Nasdaq Composite fell by about 2%.
The stock market will be closed on Thursday for Thanksgiving. Trading will resume on Friday with a shortened session, closing at 1 p.m. Eastern Time.
Retail stocks jump ahead of Black Friday
Investors are focusing their attention on retail companies ahead of Black Friday.
The State Street SPDR S&P Retail ETF (XRT) is up nearly 6% year to date. If this rally continues through Friday's close, it will be the fund's biggest weekly gain since May, when it rose more than 8% in a single week.
