Wall Street Soars as Tech Optimism and Rate Cut Hopes Drive Market

Wall Street continued its upward trend, fueled by a buoyant tech sector and increased prospects of a December rate cut by the Federal Reserve. Major stock indexes posted gains, with optimism from Nvidia and Dell's strong projections. The S&P 500 is expected to rise 12% by 2026.

Wall Street extended its rally on Wednesday, driven by renewed strength in the tech sector and increased speculation of an interest rate cut by the U.S. Federal Reserve in December. Ahead of the Thanksgiving holiday, all major U.S. stock indexes recorded their fourth consecutive daily gains.

Investor confidence was buoyed by Nvidia's positive quarterly results and Dell Technologies' impressive revenue forecast, which eased concerns over inflated tech valuations. Market optimism was further supported by a Reuters poll indicating a 12% rise in the S&P 500 through year-end 2026, powered by a robust economy and accommodative Fed policies.

The market's upward momentum came even as the Fed's Beige Book had little impact on rate expectations, with the CME's FedWatch tool signaling a high probability of a quarter-point rate cut in December. The S&P 1500 Airlines index surged 3.0% on heavy travel for the Thanksgiving period, viewed as a consumer health indicator.

(With inputs from agencies.)