Wall Street's Holiday Rally Fueled by Fed Rate Cut Hopes

Wall Street continued its gains as tech strength resurged and expectations for a Federal Reserve rate cut in December grew. Major stock indexes posted consecutive daily gains, buoyed by strong earnings from Nvidia and Dell Technologies, and positive U.S. airline performance during the busy travel season.

Wall Street extended its rally on Wednesday, lifted by renewed tech sector strength and growing anticipation of a December interest rate cut by the U.S. Federal Reserve. Investors embraced the buying mood ahead of the Thanksgiving holiday, as all three major U.S. stock indexes marked their fourth consecutive daily rise.

Chuck Carlson, CEO of Horizon Investment Services, highlighted the holiday-influenced light trading and optimism among retail investors. He pointed to the shift in market sentiment towards expectations of a Fed rate cut as a key market driver in recent days.

Despite mixed retail forecasts and ongoing labor market challenges, robust core capital goods orders indicated resilient corporate expenditures. The S&P 500, Nasdaq, and Dow closed with notable gains, boosted by Dell's strong earnings, while Deere faced pressure from tariff-induced profit concerns.

(With inputs from agencies.)