Stocks are up for the fourth day in a row. This could be the best Thanksgiving in 13 years

U.S. stocks are growing for the fourth day in a row. At the end of trading on November 26, the broad market index S&P 500 and the index of "blue chips" Dow Jones Industrial Average added 0.7%. The index of the technology sector Nasdaq Composite rose by 0.8%.

Support for the shares is provided by the optimism returned to investors in relation to the AI sector, notes MarketWatch. Shares of Oracle jumped about 4% after Deutsche Bank reiterated its recommendation to buy the cloud service. Shares of chipmaker Nvidia added more than 1%, recovering part of the recent drawdown, and securities of another representative of the "Magnificent Seven" - Microsoft - rose almost 2%.

The market is also influenced by investors' expectations that the Fed will lower the key rate in December. The market estimates the probability of this event at about 85%. In addition, investors hope that the Federal Reserve may continue to reduce rates in 2026.

"The skepticism around AI was short-lived," Baird investment strategist Ross Mayfield told MarketWatch. - In my view, there was no reason for it. In addition, we saw a meaningful change in rate cut expectations in December, and that was an important catalyst. So it was a really broad rally in a shortened week."

"This is just a pullback after the move into defensive assets that we saw a week or two ago, which was completely normal," Eric Deaton, president and managing director of The Wealth Alliance, told CNBC. - Thanksgiving week is usually a strong week for the markets. Sentiment is good."

"We're also approaching the best period of the year for stocks, November through April," he continued. - It's hard not to remain optimistic."

Since the start of the week, the S&P 500 is up more than 3%, the Nasdaq Composite is up more than 4% and the Dow is up more than 2%. This is the best result for the week on which Thanksgiving fell, at least since 2012, writes MarketWatch. The stock market will be closed Thursday due to Thanksgiving. On Friday, trading will resume in a shortened format and will end at 13:00 U.S. Eastern Time (00:00 in Astana).

This article was AI-translated and verified by a human editor