US stocks moved higher on Wednesday as Wall Street looked to extend a four-day winning streak ahead of Thanksgiving. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.5%, and the Nasdaq Composite climbed over 0.6%, fueled by strong technology gains and investor optimism over a potential Federal Reserve interest-rate cut in December.
The market’s momentum came after Tuesday’s big session, where the Dow jumped 660 points, driven by tech stocks. Alphabet (GOOG) hit a record high amid news that it could challenge Nvidia (NVDA) in AI chip dominance, though it eased slightly at Wednesday’s open. Smaller tech names also contributed, signaling that Wall Street confidence is spreading across the sector.
Investors remain focused on the Federal Reserve as the central bank’s Beige Book was released Wednesday. The report showed mixed signals across regions, giving clues on consumer spending and labor markets. Markets currently price in an over 80% chance of a quarter-point rate cut next month after weaker-than-expected retail sales and wholesale inflation readings in September.
Jobless claims fell unexpectedly last week to the lowest level since April, adding another layer to market optimism. Traders are weighing these signals against the broader economic outlook while staying alert to any surprises from Fed statements or regional data. The ongoing discussion over Fed leadership, including potential replacements for Chair Jerome Powell, adds further attention on central bank policy. Kevin Hassett, the president’s top economic adviser, is seen as the frontrunner to lead the Fed next year.
Corporate earnings also shaped market sentiment. Big-box retailers reported better-than-expected results on Tuesday, boosting confidence in consumer spending. On Wednesday, Deere & Company (DE) slipped after its full-year forecast fell short of expectations. Deere, a leading farm machinery maker, was one of the last major earnings releases before the holiday-shortened week. The US stock market will close early at 1 p.m. ET on Friday and remain closed Thursday for Thanksgiving.
Despite some caution, analysts note that technology remains the main driver of Wall Street’s gains. Companies like Alphabet and Nvidia continue to attract investor attention, especially with AI innovation fueling growth expectations. The holiday-shortened week, lighter trading volumes, and upcoming economic data could create short-term volatility, but optimism is holding.
How the Dow, S&P 500, and Nasdaq are trading today
US stocks moved higher on Wednesday as Wall Street aimed to extend its rally before the Thanksgiving break. The Dow rose 0.3% to 47,293.34, gaining 180.89 points. The S&P 500 added nearly 0.5%, and the Nasdaq climbed more than 0.6% after Tuesday’s strong 660-point surge in the Dow. Tech stocks again led sentiment, with Alphabet easing slightly at the open after a 1.6% jump pushed it near a $4 trillion valuation.Investors focused heavily on the Federal Reserve’s next steps. Markets priced in over an 80% probability of a December quarter-point rate cut after delayed retail sales and wholesale inflation data showed softer trends. Initial jobless claims also fell to their lowest level since April, reinforcing expectations of cooling economic pressures. The Fed’s Beige Book, due Wednesday, is expected to offer new evidence on consumer spending and labor demand.
Political attention around the central bank intensified as President Trump evaluated five finalists to replace Chair Jerome Powell next year. Kevin Hassett, the White House’s top economic adviser, has emerged as the frontrunner as the search narrows.
Nvidia gained about 2% after dropping 2.6% Tuesday on reports of a potential AI-chip collaboration between Google and Meta. The company said it remained “a generation ahead,” while analysts at Bernstein argued its GPUs still dominate high-end AI demand. Alphabet’s modest pullback followed Tuesday’s record close.
Robinhood shares jumped 8.5% after announcing a partnership with Susquehanna International Group to launch a futures and derivatives exchange through its acquisition of LedgerX. The company highlighted rising customer interest in prediction markets.
Deere & Company slid after issuing a full-year outlook that missed expectations. The farm machinery manufacturer was the final major name on the earnings calendar in the holiday-shortened week. Markets close Thursday and will shut at 1 p.m. ET Friday.