Markets Rally as December Rate Cut Looms, Tech Stocks Surge

Wall Street's main indexes rose for a fourth straight session due to expectations of a Federal Reserve rate cut in December. Tech stocks, buoyed by strong forecasts from AI-server maker Dell, led the charge. Investors also weighed potential leadership changes at the Fed and mixed economic indicators.

Wall Street witnessed a strong rally with its main indexes rising for the fourth consecutive session, driven by investor optimism about a potential Federal Reserve rate cut in December. This sentiment was fueled by strong forecasts from AI-server maker Dell, allowing the S&P 500 and Nasdaq to hit two-week highs.

Mixed economic data kept investors cautious, with declining jobless claims and a surge in capital goods orders. Despite the economy not slipping into recession, it remains vulnerable enough to accommodate a rate cut. Kim Forrest of Bokeh Capital Partners noted the elevated unemployment could motivate the Fed to pursue further cuts.

Market focus now shifts to the Fed's Beige Book release, while speculations about White House economic adviser Kevin Hassett entering the Fed Chair race loom. Amidst this backdrop, consumer tech stocks soared, preparing for the critical holiday shopping period impacted by trade tariffs and economic fluctuations.

(With inputs from agencies.)