26 Nov 2025
Stocks Record Fourth Day of Gains as Holiday Season Approaches
On Wednesday, stock markets experienced a notable uptick, marking the fourth consecutive day of gains as investors prepared for the upcoming Thanksgiving holiday. The Dow Jones Industrial Average surged by 312 points, translating to an increase of 0.7%. Similarly, the S&P 500 and the Nasdaq Composite both recorded gains of 0.7%.
This upward momentum was significantly influenced by Oracle, a key player in the artificial intelligence sector, whose shares soared by 4%. Nvidia also saw a 1% rise in its stock price, recovering from a recent downturn, while Microsoft, another member of the so-called Magnificent Seven tech stocks, gained 1% as well.
Despite the recent volatility in the markets, the previous trading session had ended positively, with the Dow climbing over 660 points and achieving its third consecutive day of gains. A number of technology stocks contributed to this rally, with Alphabet reaching new record highs following reports that Meta Platforms is contemplating the use of Google's Tensor Processing Units (TPUs) in 2027. However, chipmaker Nvidia faced a decline of more than 2.5%, highlighting the mixed performance within the tech sector.
Market analysts, such as Clark Bellin, president and chief investment officer of Bellwether Wealth, noted that the current stock market is attempting to recover from a series of declines experienced in recent weeks.
The pullback observed in November was relatively modest, with a drop of only about 4% from the late October peak, which is significantly less than the typical 10% correction threshold that often triggers more widespread concern among investors. Bellin expressed optimism about the market's potential to revisit previous highs but cautioned that there isn't a clear catalyst to drive significant gains before the year concludes.
Investors are keenly watching for developments that could influence the Federal Reserve's upcoming interest rate decisions. According to the CME FedWatch tool, traders are currently anticipating a greater than 80% likelihood of a quarter-point interest rate cut from the Fed in December. This speculation is fueled by broader economic conditions and inflation trends, which have prompted discussions about the central bank's monetary policy direction.
In a related note, Treasury Secretary Scott Bessent revealed in an interview with CNBC that there is a strong possibility that former President Donald Trump will announce the next Federal Reserve chair before Christmas. Bessent mentioned that Trump is actively interviewing candidates for the position, with growing expectations surrounding Kevin Hassett, the director of the White House National Economic Council, as a leading contender.
As the holiday season approaches, market participants are not only focused on interest rates but also on corporate earnings reports and economic indicators that could provide further insight into the health of the economy. With the potential for increased consumer spending during the holiday season, analysts are closely monitoring retail performance and other economic metrics that could influence market sentiment.
In summary, while the stock market is currently on an upward trajectory, the outlook for the remainder of the year remains uncertain. Investors are balancing optimism about potential gains with caution regarding the lack of clear catalysts and the evolving economic landscape. As we move into the final weeks of the year, the interplay between economic data, corporate performance, and Federal Reserve policies will be critical in shaping market dynamics.
