Tech Lifts Wall Street as Fed Cut Hopes Fuel Holiday Rally – US Market Wrap

Tech stocks led the rise in US shares, as increased prospects for interest rate reduction let traders continue their newfound optimism into the Thanksgiving holiday. The dollar fell.

The S&P 500 gained 0.7% Wednesday, extending its rally into a fourth session after recovering its 50-day moving average, a critical technical support. Volume on the stock benchmark was around 11% lower than the 30-day average for this time of day. The Nasdaq 100 concluded the session up 0.9% after Nvidia recovered from competitive concerns about its AI processors.

The VIX fell roughly 35% over four days, marking the largest decline in Wall Street’s fear barometer since mid-April.
Treasury yields dipped as initial unemployment claims for the week of November 22 declined modestly, confounding predictions of a mild increase. The yield on 10-year notes has remained around 3.99%. The dollar fell 0.3%.

Equities are regaining momentum after a sharp sell-off in early November due to concerns about inflated technology valuations. Sentiment has since risen as Federal Reserve members’ dovish words reignited hopes for a December rate decrease.