U.S. stocks closed higher on Wednesday, marking the fourth consecutive day of gains for Wall Street. The S&P 500 increased by 0.7%, the Dow Jones Industrial Average also rose by 0.7%, and the Nasdaq composite added 0.8%.
Technology companies were at the forefront of the rally, with most sectors in the S&P 500 finishing higher. On the New York Stock Exchange, advancing stocks outnumbered declining ones by more than two to one.
The trading week is shortened due to the Thanksgiving holiday, with markets closed on Thursday and open for limited hours on Friday.
The recent rebound in stock prices has been driven by investor expectations that the Federal Reserve may cut interest rates again in December. This recovery has helped major indexes regain ground lost earlier this month during a period of selling.
Sam Stovall, chief investment strategist at CFRA, said: “It’s a tech-driven, buy-the-bounce kind of response to the very swift sell-off that we saw. Investors are of the mind that this pullback has run its course and that it’s going to lead to a December dash to the finish line.”
Dell Technologies saw its shares rise 5.8% after reporting record orders for its artificial intelligence servers. Earlier in November, Dell and other technology firms had declined as investors grew concerned about high valuations linked to enthusiasm over AI technologies. Nvidia gained 1.4%. Other notable technology sector increases included Microsoft, up 1.8%, and Broadcom, up 3.3%.
Financial sector companies also contributed to market gains; Robinhood Markets climbed 10.9% following an announcement that it plans to introduce a futures and derivatives exchange next year as part of efforts to expand its predictions market business.
Urban Outfitters’ shares rose by 13.5% after reporting earnings above Wall Street forecasts, joining other retailers who have done so this week.
Petco shares surged 14.5% after raising its full-year earnings outlook despite mixed quarterly results.
On the negative side, Deere & Company fell by 5.7% after issuing a cautious forecast citing tariff pressures affecting its farm equipment business.
In bond markets, yields were mixed; the yield on the ten-year Treasury note fell to 3.99%, while yields on two-year notes rose slightly to 3.48%.
Market optimism has been bolstered by comments from Federal Reserve officials suggesting another interest rate cut could occur at their December meeting—a move traders now see as having nearly an 83% chance according to CME Group data.
The Federal Reserve has already lowered rates twice this year amid concerns over slowing job growth but faces challenges balancing inflation risks with economic support measures as employment figures weaken further.
Recent corporate earnings have generally been positive though some economic indicators remain uneven; Americans bought less from retailers in September than expected and consumer confidence appears fragile amid ongoing uncertainty over delayed government economic reports due to previous shutdowns.
At close Wednesday: The S&P 500 gained 46.73 points (to end at 6,812.61), while The Dow was up by 314.67 points (to close at 47,427.12) and The Nasdaq increased by 189.10 points (finishing at 23,214.69).
