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U.S. stocks rallied for a fourth straight day on Wednesday, having clawed back all of last week’s losses ahead of the Thanksgiving holiday.
Gains made by Alphabet Inc.
GOOG GOOGL and Broadcom Inc. AVGO since last Friday have helped breathe new life into the AI trade, while growing expectations for Federal Reserve interest-rate cuts bolstered rate-sensitive small caps and other corners of the market.
The Dow Jones Industrial Average DJIA and S&P 500 SPX each finished up by almost 0.7% on Wednesday, bringing their week-to-date advances to 2.6% and 3.2%, respectively. With an abbreviated trading session still ahead for Friday, both indexes were on track for their strongest Thanksgiving-week performances since 2012, based on preliminary data from Dow Jones Market Data. The Nasdaq Composite COMP ended 0.8% higher on Wednesday, bringing its week-to-date gain to 4.2%. That leaves the index on track for its best Thanksgiving-week performance since 2008, when it rose 10.9%.
The market’s latest gains came after the S&P 500 finished above its 50-day moving average on Tuesday and Wednesday in an encouraging sign that the near-term trend is likely to be higher. However, this week’s powerful comeback was not enough to offset overall losses so far for the month of November. The S&P 500 was still off 0.4% for the month as of Wednesday’s close, while the Nasdaq Composite was off by almost 2.2%.
Read: November’s stock-market pullback could be a speed bump. Or possibly a hint of something worse to come.
