Wall Street Extends Winning Streak as Tech Strength Lifts Markets Ahead of Thanksgiving

U.S. stocks advanced on Wednesday, building on a week of solid gains as investors moved into the holiday period with renewed confidence. Major indexes rose for a fourth consecutive session, supported by strong momentum in big-cap technology shares and optimism surrounding monetary policy decisions expected in the coming weeks.

The Dow Jones Industrial Average added nearly 0.8%, extending Tuesday’s outsized advance and maintaining its upward trajectory for the week. The S&P 500 climbed roughly the same amount, while the Nasdaq Composite outperformed with a gain close to 0.9%, reflecting the continued appetite for growth-oriented names.

A surge in enthusiasm around artificial intelligence helped fuel the broader market. Shares of a leading enterprise software giant jumped more than 4% after investors responded positively to developments in its AI strategy. Another major chip designer recovered from a recent pullback, rising about 1%, while a mega-cap tech rival also advanced, adding steady support to benchmark indexes.

The market’s rebound this week follows a turbulent period marked by concerns over stretched valuations, particularly in the technology sector. Still, recent trading patterns suggest that dip buyers remain highly active. Despite November’s swings, the overall pullback amounted to roughly 4% from late-October highs, far short of the typical 10% correction threshold that often resets market sentiment.

Investors are also closely tracking signals that could influence the Federal Reserve’s next interest rate decision. Futures markets are pricing in strong odds of a quarter-point rate cut in December, reflecting expectations of a more accommodative policy stance before year-end. Adding to the anticipation, the U.S. Treasury Secretary said there is a “very good chance” that the President will announce the next nominee for Federal Reserve chair before Christmas. Expectations continue to tilt toward the current head of the White House National Economic Council, who is viewed as supportive of lower borrowing costs.

Despite the positive momentum this week, November remains a challenging month for equities. All three major U.S. benchmarks are still on track for monthly losses, with investors reassessing valuations across high-flying tech names. The S&P 500 is down nearly 1% in November, while the Nasdaq Composite has lost close to 3%. The Dow has also slipped around 1% on the month.

Still, sector performance on Wednesday reflected broad participation in the rally. Nine of the eleven S&P 500 sectors traded higher, led by information technology, materials, consumer staples, and utilities. Only communication services and health care lagged behind, posting modest declines.

Fresh data offered additional insight into the state of the U.S. economy. Weekly jobless claims fell to 216,000, the lowest level since April, signaling ongoing resilience in the labor market despite tighter financial conditions. Meanwhile, several corporate updates helped stir market action before the opening bell. A major farm-equipment manufacturer reported stronger-than-expected quarterly results but issued cautious forward guidance, sending its shares lower. In contrast, a leading apparel retailer soared after reporting robust earnings and highlighting growth in both in-store and digital channels. A global computer and server company also posted upbeat expectations for AI-related sales, lifting its stock in premarket trading.

Another focus of investor attention was the impressive performance of one of the world’s largest technology conglomerates, which recently hit multiple all-time highs. Growing enthusiasm for its next-generation AI platform has driven a substantial rally over the past several months, with the stock nearly doubling in half a year. Despite its strong surge, momentum indicators show that the stock had reached even higher levels of overbought conditions earlier in the year.

Looking ahead, the market will pause on Thursday for the Thanksgiving holiday, with a shortened trading session scheduled for Friday. Investors will resume positioning for the final weeks of the year, balancing expectations for monetary policy shifts, sector-specific growth drivers, and broader economic indicators.

With strong corporate performance in pockets of the market, continued enthusiasm for AI-linked investments, and mounting anticipation around the Federal Reserve’s next steps, the final stretch of 2025 appears poised for more market-moving developments—even as investors enjoy a brief holiday respite.