U.S. stock markets are extending their winning streak into Wednesday's midday trading, buoyed by growing optimism for a potential interest rate cut by the Federal Reserve in December. All three major indexes are posting gains, building on strong performances earlier in the holiday-shortened week. Investors are closely watching a mix of corporate earnings, economic data, and the impending Thanksgiving holiday, which will see markets closed on Thursday and an early close on Friday.
Major Indexes Show Midday Strength
As of midday on Wednesday, November 26, 2025, the market is demonstrating solid upward momentum. The S&P 500 Index (SPX) is up approximately 0.6%, pushing towards new 1.5-week highs. The Dow Jones Industrial Average (DJI) is also advancing, gaining around 0.6%, while the tech-heavy Nasdaq Composite (IXIC) is leading the charge with a rise of roughly 0.7%. This follows a robust Tuesday session where the Dow rallied 1.4%, the S&P 500 gained 0.9%, and the Nasdaq Composite climbed 0.7%. The positive sentiment is largely attributed to falling bond yields and recent dovish comments from Federal Reserve officials, which have strengthened expectations for a rate cut at the upcoming December 9-10 FOMC meeting, with traders now pricing in an 80% probability.
Midday trading patterns reveal broad-based gains, with strength particularly noted in the semiconductor sector. The market's resilience comes despite mixed economic data released this week, suggesting that the prospect of easier monetary policy is currently a dominant factor for investors.
Upcoming Market Events and Economic Data
The remainder of the week will be significantly impacted by the Thanksgiving holiday. U.S. stock and bond markets will be closed on Thursday, November 27, for Thanksgiving. Trading will resume on Friday, November 28, with an abbreviated session, closing early at 1:00 PM ET for stocks and 2:00 PM ET for bonds. This shortened week often leads to lighter trading volumes and increased volatility as institutional investors may square positions ahead of the long weekend.
Beyond the holiday, market participants will continue to scrutinize economic indicators. This week saw the Conference Board report a sharp decline in the consumer confidence index for November, falling to 88.7 and missing expectations. This marks the lowest level since April, with consumers expressing increased pessimism about future business and labor market conditions. Conversely, some data offered a brighter outlook; weekly initial unemployment claims unexpectedly fell to a seven-month low of 216,000, and September's capital goods new orders, a proxy for capital spending, rose more than anticipated.
Looking ahead, the primary focus remains on the Federal Reserve's next policy decision. The strong likelihood of a December rate cut is a key driver of current market optimism. Investors will also be keen on any further commentary from Fed officials that could provide additional clarity on the future trajectory of monetary policy.
Major Stock News and Corporate Announcements
Several companies are making headlines with significant stock price movements and corporate announcements today:
Urban Outfitters (URBN) shares are soaring, up 12% in midday trading, after the retailer reported strong third-quarter earnings that topped analyst estimates and provided an encouraging outlook for the holiday season. Sales reached $1.53 billion with earnings per share of $1.28, both exceeding consensus forecasts.
Autodesk (ADSK) surged 6.5% after the digital design software maker reported better-than-expected third-quarter results and raised its full-year outlook. The company's adjusted earnings per share of $2.67 on revenue of $1.85 billion surpassed analyst expectations.
Dell Technologies (DELL) is advancing 2.5%, following its announcement of record orders for its artificial intelligence servers. This news comes after a period of investor concern regarding the valuation of AI-related stocks. Dell also raised its 2026 revenue forecast.
In the semiconductor space, Nvidia (NVDA) saw its shares tick 0.4% higher today, recovering some losses from Tuesday when the stock fell 2.6% on reports that Meta Platforms (META) might consider using AI chips from Alphabet (GOOGL) (Google's parent company) in its data centers. Alphabet shares, which hit an all-time high on Tuesday after unveiling its advanced Gemini 3 AI model last week, were down less than 1% at midday.
On the downside, Workday (WDAY) sank 8% after reporting its third-quarter subscription revenue right on consensus, but potentially disappointing investors with its outlook. Deere & Co. (DE) dropped 3.5% after the farm equipment manufacturer issued a downbeat forecast, citing pressure from tariffs. HP Inc. (HPQ) also fell 2.5%, forecasting weaker adjusted EPS for 2026 and announcing plans to reduce its workforce by 4,000 to 6,000 people as part of a cost-cutting effort.
Other notable movers include Robinhood Markets (HOOD), which surged over 6% after announcing a partnership with Susquehanna International Group on a futures and derivatives exchange. Li Auto Inc. (LI), the China-based EV maker, is down 3.4% after reporting a surprise third-quarter loss. Cloud giant Nutanix Inc. (NTNX) plummeted 11.8% after cutting its full-year sales guidance. Analog Devices Inc. (ADI) climbed 5.3%. Additionally, EHang Holdings Limited (EH) announced its unaudited third-quarter 2025 financial results, reporting decreased total revenues. Lee Enterprises, Incorporated (LEE) also reported its preliminary fourth-quarter and full-year fiscal 2025 results.
The market continues to navigate a complex landscape of economic signals and corporate performance, with the overarching theme of potential Fed rate cuts providing a tailwind as the trading week heads into the Thanksgiving holiday.
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.