U.S. equities continued their upward trajectory in afternoon trading on Wednesday, November 26, 2025, with major indexes extending a multi-day winning streak. Investor optimism was largely buoyed by increasing expectations for a Federal Reserve interest rate cut in December, coupled with a series of dovish economic data releases. Technology stocks were particularly strong performers, driving much of the market's gains as the holiday-shortened week progressed.
Afternoon Trading Overview and Major Indexes
As the afternoon session unfolded, the market maintained a positive momentum, building on strong gains from earlier in the week. The tech-heavy Nasdaq Composite led the charge, climbing 1% in recent trading. The benchmark S&P 500 Index also advanced robustly, up 0.9%, while the blue-chip Dow Jones Industrial Average added 425 points, rising 0.9%. All three major indexes are currently on pace for their fourth consecutive day of gains, reflecting a broad-based rally. For the holiday-shortened week, which will see markets closed tomorrow for Thanksgiving and an early close on Friday, the Nasdaq has surged more than 4%, the S&P 500 is up 3.4%, and the Dow has gained 2.8%.
This sustained rally follows a strong performance on Tuesday, where the Dow Jones Industrial Average (.DJI.US) appreciated 1.4%, the S&P 500 Index (.SPX.US) gained 0.91%, and the Nasdaq Composite Index (.IXIC.US) rose 0.58%. The underlying sentiment driving these gains is a growing conviction among traders that the Federal Reserve will implement another 25-basis-point rate cut at its upcoming December meeting, with probabilities hovering around 80-85%. This expectation was reinforced by recent economic data, including weaker-than-expected September retail sales, a softer Producer Price Index (PPI) excluding food and energy, a decline in November consumer confidence, and a decrease in private payrolls reported by ADP.
Sector Performance
Technology companies were at the forefront of Wednesday's rally, accounting for a significant portion of the market's advance. This continues a trend where the "Magnificent Seven" technology stocks have been a supportive factor for the overall market, albeit with some recent divergence. On Tuesday, the Health Care Select Sector SPDR (XLV) and the Consumer Discretionary Select SPDR (XLY) were notable performers, climbing 2.3% and 2.1%, respectively. The housing sector also saw strength, with home builders and home building suppliers rallying as the 10-year Treasury note yield fell to a 3.5-week low of 3.99% on Tuesday, a positive development for housing demand.
Upcoming Market Events
The market calendar is lighter towards the end of the week due to the Thanksgiving holiday. U.S. stock and bond markets will be closed on Thursday, November 27, and will observe an early close on Friday, November 28. However, several key economic data releases are still on investors' radar for Wednesday. These include the Federal Reserve's Beige Book, which provides an anecdotal summary of current economic conditions, as well as weekly jobless claims and durable goods order data.
Looking ahead, the primary focus remains on monetary policy. The Federal Open Market Committee (FOMC) meeting on December 9-10 is widely anticipated, with a high probability of a 25 basis point rate cut. Investors will also be keenly awaiting the November Consumer Price Index (CPI) report, scheduled for release on December 18, and the November employment report, due on December 16, for further clues on inflation and the labor market. Internationally, the UK's Autumn Budget, which was inadvertently released early, was also a significant event for European markets today.
Corporate News and Stock Highlights
Several major companies made headlines with significant stock movements and corporate announcements:
- Apple (AAPL) saw its shares rise about 1% in Wednesday afternoon trading. The tech giant is reportedly poised to surpass Samsung for the first time in 14 years to claim the top spot in global smartphone shipments.
- Dell Technologies (DELL) surged 6-6.4% after announcing it had received record orders for its artificial intelligence servers, indicating strong demand in the AI infrastructure space.
- Chipmakers showed mixed performance. Advanced Micro Devices (AMD) rose approximately 3.5% on Wednesday, recovering some of its 4.1% loss from Tuesday. Broadcom (AVGO) also advanced, gaining about 3% today, following a 2.6% rise on Tuesday.
- In contrast, Nvidia (NVDA), while up 1.7-2.5% in Wednesday morning trading, had experienced a significant drop of 2.6-3.9% on Tuesday. This decline was triggered by reports that Meta Platforms (META) is in discussions to potentially use Google's (GOOGL) AI chips in its data centers, signaling increased competition in the AI chip market. Nvidia is reportedly down 14-15% month-to-date, putting it on track for its weakest month since September 2022.
- Alphabet (GOOGL) continued its strong ascent, rising 1.5-1.9% Wednesday, building on excitement surrounding its recently unveiled Gemini 3 AI model. The company's stock also benefited from the news regarding Meta's potential interest in its AI chips.
- Microsoft (MSFT) saw its shares climb 2% on Wednesday, adding to its Tuesday gain of 0.63%.
- In earnings-related news, Urban Outfitters (URBN) soared between 10% and 12.1% after reporting stronger-than-expected quarterly results. Autodesk (ADSK) gained 3.5% after the digital design software maker raised its full-year outlook.
- However, not all earnings were met with enthusiasm. Workday (WDAY) sank 9% despite reporting better-than-expected third-quarter results and issuing a rosy full-year subscription revenue outlook, as investors punished the stock. Deere & Co. (DE) also dropped 4.5-5.1% after providing a downbeat forecast, citing difficult market conditions and ongoing margin pressures from tariffs.
- HP (HPQ) fell 2% following its earnings release, joining a trend of big tech companies laying off workers amid an AI push.
- Robinhood Markets (HOOD) jumped 10.7% after the trading platform announced plans to roll out a futures and derivatives exchange next year.
- Petco (WOOF) surged 19.8% a day after delivering mixed quarterly results but raising its fiscal year earnings outlook.
- Keysight Technologies (KEYS) closed up over 10% on Tuesday after reporting strong Q4 revenue and a robust Q1 forecast. Similarly, Zoom Communications (ZM) closed up more than 9% on Tuesday after strong Q3 revenue and an increased 2026 revenue forecast.
- Alibaba (BABA) saw its U.S.-traded stock fall 2.1% on Wednesday, despite reporting stronger revenue than analysts expected, as its overall profit fell short of forecasts.
The afternoon trading session on Wednesday, November 26, 2025, underscored a market driven by optimism for potential Fed rate cuts and strong performance in key technology and growth sectors. As investors head into the Thanksgiving holiday, the focus remains on the Federal Reserve's next moves and upcoming economic data that could further shape market expectations for the remainder of the year and into 2026.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.