US equities continued their upward momentum on Wednesday, building on recent gains as investors positioned ahead of the Thanksgiving holiday weekend.
The Dow Jones Industrial Average rose 0.9%, the S&P 500 also advanced 0.9%, and the Nasdaq Composite added around 1% following Tuesday’s sharp rally.
Tech stocks led the recovery. Nvidia popped more than 1%, reversing some of Tuesday’s losses amid growing competition in the AI chip sector. Microsoft, Amazon, and Apple also contributed to the market’s positive tone, while Alphabet slipped slightly from record highs.
Investor focus remains squarely on Federal Reserve policy. Markets are pricing in more than an 80% probability of a quarter-point rate cut in December, after delayed September readings for retail sales and wholesale inflation fell short of expectations.
Initial jobless claims unexpectedly fell last week to their lowest since April, further supporting optimism about easing. The Fed’s Beige Book, due Wednesday, will provide a regional snapshot of consumer spending and labour market conditions ahead of the central bank’s December meeting.
Palace intrigue at the Federal Reserve continues as President Trump’s shortlist of five finalists to replace Chair Jerome Powell next year narrows, with White House economic adviser Kevin Hassett emerging as the frontrunner.
Bitcoin also showed signs of stabilisation, rising to $90,000 after dipping to $81,000 last Friday, its lowest level since April. Despite the bounce, it remains down roughly 28% from its October all-time high above $126,000, and analysts caution that a sustained move above $100,000 is needed to reduce the risk of further declines.