4:15pm: Markets climb into Thanksgiving break
All the major indexes finished higher on Wednesday, notching their best four-day run since May as traders headed into the Thanksgiving break feeling more confident about the odds of an interest-rate cut next month.
The Nasdaq climbed 0.8% to 23,215, adding 189 points, while the Dow Jones rose 0.7% to 47,427. The S&P 500 also gained 0.7%, closing at 6,813, and the Russell 2000 matched the Nasdaq’s 0.8% rise to finish at 2,486.
Tech once again did much of the heavy lifting. Nvidia jumped more than 1% as AI-chip enthusiasm continued, while Alphabet eased back from record highs. Microsoft, Tesla, and Apple also advanced, helping keep the rally intact despite growing competition across the AI space.
Bitcoin briefly surged to $90,000, adding another jolt to market sentiment.
A fresh batch of softer labor market data further supported hopes that the Federal Reserve could move toward a rate cut as soon as December.
Markets are closed Thursday for Thanksgiving and will reopen Friday, with trading set to wrap at 1pm ET.
3:45pm: Proactive news headlines
- UBS struck a more upbeat stance on Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) after meetings with management, citing growing licence momentum, better US market access and improving cost competitiveness for its SOFC technology.
- HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) launched a US$300 million at-the-market equity program, giving it the flexibility to raise capital gradually over time.
- Savannah Resources PLC (AIM:SAV, XETRA:SAV, OTC:SAVNF) shares rose after an operational update highlighted stronger global lithium demand, rising spodumene prices and the company’s bolstered finances following an oversubscribed fundraise.
- Spectra Systems Corporation (AIM:SPSY, OTC:SCTQ) advanced after securing a five-year maintenance contract for existing and next-generation banknote sensor technology, expected to generate about $6.7 million in service revenue.
- Versarien PLC (AIM:VRS, OTC:VRSRF) shares tumbled after the company said a potential UK-listed buyer had withdrawn from a deal to acquire its remaining assets amid its ongoing restructuring efforts.
- 88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF) gained after outlining 2026 production testing plans for Project Phoenix, centred on drilling the Franklin Bluffs-1H horizontal well on Alaska’s North Slope.
- Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) shares rose on encouraging results from the Mateguafa 6 appraisal well in Colombia, which encountered multiple hydrocarbon zones and has begun production from the Carbonera C7 formation.
2:40pm: Market movers
- Deere & Company shares fell after posting strong quarterly results but issuing a cautious outlook for fiscal 2026.
- Workday Inc stock dropped despite beating earnings and revenue forecasts as investors questioned the sustainability of its growth.
- Zscaler Inc reported better-than-expected quarterly results, but its shares slipped amid high investor expectations.
- Urban Outfitters Inc shares jumped after the retailer delivered record quarterly earnings and revenue driven by broad brand growth.
- Autodesk Inc shares surged after the company topped Wall Street’s third-quarter earnings expectations.
- 88 Energy Ltd shares rose as the company detailed its 2026 testing plans for the Project Phoenix development in Alaska.
- Arrow Exploration Corp shares gained after reporting encouraging production results from its Mateguafa 6 appraisal well in Colombia.
1:35pm: S&P at 8,000?
JPMorgan Chase & Co (NYSE:JPM, XETRA:CMC) forecast the S&P 500 could climb to 7,500 by the end of 2026, and potentially exceed 8,000 if the Federal Reserve eases monetary policy more aggressively than expected, according to its 2026 Global Equity Outlook.
The bank’s baseline projection assumes two additional Fed rate cuts and 13% to 15% annual earnings growth for US companies, underpinned by a resilient economy and an investment surge in artificial intelligence technology.
JPMorgan highlighted an AI-driven “capex supercycle” as a key factor supporting elevated valuations.
"Despite AI bubble and valuation concerns, we see current elevated multiples correctly anticipating above-trend earnings growth, an AI capex boom, rising shareholder payouts, and easier fiscal policy," the firm said in a client note published Tuesday. "More so, the earnings benefit tied to deregulation and broadening AI-related productivity gains remain underappreciated."
1:00pm: Hot start to afternoon
The Nasdaq surged ahead to start Wednesday’s afternoon trading session as tech stocks continued to stage a comeback.
Just after 1pm ET, the tech-heavy index was up over 1%, with the Dow and S&P 500 close on its heels at 0.9% above opening levels.
11:55am: Chicago PMI weak
The Chicago Purchasing Managers' Index (PMI) dropped to 39.8 in November, down from October's 43.8 and missing forecasts of 44.3, marking the first reading below 40 since January.
While new orders showed a slight increase, production, employment, backlogs, and supplier deliveries all weakened across northern Illinois, northwest Indiana, and southern Michigan, signaling broad-based softness in the regional manufacturing sector.
11:10am: Jobless claims fall
Initial US jobless claims fell by 6,000 to 216,000 for the week ending November 22, the lowest level since mid-April and well below forecasts of 225,000, the Department of Labor reported Wednesday. Continuing claims edged up slightly to 1.96 million, in line with expectations but remaining near late 2021 highs.
The data points to a steady labor market, with stock futures rising as investors weigh the potential for Federal Reserve rate cuts.
“Immigration policies have not yet been fully felt by the jobless claims data,” said Eric Teal, chief investment officer at Comerica Bank. “The policies will likely boost employment and wages in several industries like construction and hospitality. A significant amount of rate cuts will be needed to stimulate the economy and continue the positive market momentum, but we’re closely monitoring the inflation data for signs of a ‘second wave.’”
10:30am: Momentum builds
US equities are building on yesterday’s momentum, with the S&P 500 nudging back above 6,800 as buyers returned to the market.
Treasuries advanced across the curve, while the dollar slipped below the 100 handle.
Michael Brown, senior research strategist at Pepperstone, noted, “It remains the case that a resilient underlying US economy, robust earning growth, a calmer tone on trade, and a looser monetary backdrop provides a ‘perfect storm’ to force risk assets to the upside.”
Investors are now turning attention to the potential for a Federal Reserve rate cut in December. Brown added that the dovish repricing contributed to the market’s movement, saying the Treasury yield dip and weaker dollar reflected a textbook response to recent policy expectations.
9:50am: Small caps, tech drive gains
Wall Street opened higher on Wednesday, with the Nasdaq leading the charge, up 0.7% to 23,176, followed by the Dow Jones, which is trading 0.6% higher at 47,378.
The S&P 500 is also up 0.6% at 6,803, while the Russell 2000 is largely flat at 2,465, despite a recent small-cap rally that has lifted the index 7% over the past three sessions.
Investors are watching economic data due later this morning, including weekly jobless claims and September durable-goods orders, while the Fed’s Beige Book on economic conditions will be released later this afternoon.
Tech stocks are in focus early in the session. Dell (DELL) is rising after raising its overall revenue guidance, while Autodesk (ADSK) shares climb following a sales boost. NetApp (NTAP) is also up after reporting earnings and revenue above forecasts. In contrast, HP (HPQ) is down after warning that rising memory-chip costs and a 10% workforce reduction will weigh on results.
On the retail front, Urban Outfitters (URBN) is surging after beating third-quarter expectations and issuing a strong fourth-quarter outlook.
Small caps have experienced a rally recently. “The Russell 2000 rally over the past three sessions is its strongest three-day rate of change since last November,” said Adam Turnquist, Chief Technical Strategist at LPL Financial. “Leadership has come from small-cap tech, health care, consumer discretionary, and basic materials, each posting gains in the 8–9% range.”
On the broader outlook, JPMorgan strategists are bullish on US equities for 2026, setting a year-end S&P 500 target of 7,500, with potential to exceed 8,000 if the Fed continues cutting rates. Meanwhile, betting markets are also swirling with speculation that Kevin Hassett could be the next Fed chairman.
7:25am: Futures mixed
US futures were mixed again on Wednesday, but this followed a session that started in stuttering fashion but ended with one of the strongest finishes in weeks.
Dow Jones futures were up 0.5%, the S&P 500 was flat, while the Nasdaq was seen falling 0.4%.
Yesterdfay saw a faltering start overcome and further advances were made to extend the progress made at the start of the week.
The Dow jumped 664 points or 1.4% to 47,112, while the S&P 500 added 0.9% to 6,766 and the Nasdaq climbed 0.7% to 23,026, all closing back on their all-time highs from earlier in the month.
Google parent Alphabet was emblematic of the mood for tech investors on the day, hitting a fresh all-time high, up over 10% since the end of last week, helped by reports that Meta Platforms is considering using Google’s in-house chips in its data centres.
"This gave investors yet another reason to sell Nvidia," said market analyst David Morrison at Trade Nation, with the chip designer slumping 7% to below $170 for the first time since mid-September at one stage yesterday, before recovering to a loss of less than 3%.
Nvidia is down 19% from its all-time closing high of $210 from the end of last month, while AMD and Super Micro Computer also fell.
US stock index futures are responding to more dovish comments from Federal Reserve members, says Morrison, with the probability of a rate cut on 10 December rising to 85% from 30% this time last week.
Treasury Secretary Scott Bessent also suggested that President Trump may announce his preferred candidate as the new Chair of the Fed within the next four weeks, ahead of Jerome Powell second term ending in May.