Tech Revival Propels Wall Street Pre-Holiday Surge

Wall Street's major indexes gained ground as stronger tech performance and expectations of a December Fed rate cut boosted investor confidence. Nvidia's positive results and comments hinting at a dovish Fed fueled buying, while airlines surged amidst peak travel and retail season. Economic indicators suggest robust corporate expenditures, despite a mixed retail outlook.

On Wednesday, Wall Street's main indexes rallied, driven by renewed strength in the tech sector and an anticipated December rate cut from the Federal Reserve, just ahead of the Thanksgiving holiday. Investors set aside concerns about inflated tech valuations that led to losses the previous week.

Nvidia, after posting encouraging quarterly results, helped ease short-term fears. Statements from Federal Reserve officials, particularly from the New York Fed governor, point to a potential interest rate cut next month, fueling market optimism. Analysts predict a 12% rise in the S&P 500 by the end of 2026 due to a robust economy and supportive tech sector.

Earnings surprises from Dell and increased airline shares on the year's busiest travel day bolstered the S&P 1500 Airlines index. Economic data suggests resilient corporate investments despite a mixed retail forecast from leading retailers. Meanwhile, unemployment figures remain mixed, reflecting a shaky labor market outlook.

(With inputs from agencies.)