U.S. stock markets closed higher on Wednesday, November 26, 2025, extending a multi-day winning streak as investors continued to eye potential interest rate cuts from the Federal Reserve and digested a mix of economic data and corporate earnings. All three major indexes posted gains, reflecting a broad-based rally across various sectors. The upbeat sentiment comes ahead of the Thanksgiving holiday, which will see markets closed on Thursday and operate on a shortened schedule on Friday.
The S&P 500 (SPX) rose by approximately 0.8% in afternoon trading on Wednesday, building on its momentum. The Dow Jones Industrial Average (DJIA) gained around 0.8%, adding roughly 395 points, while the tech-heavy Nasdaq Composite (IXIC) advanced by about 0.9%. These gains continued a strong run for Wall Street. For context, on Tuesday, November 25, the Dow Jones Industrial Average appreciated 1.4% or 664.18 points to close at 47,112.45. The Nasdaq Composite finished at 23,025.59, rising 0.7% or 153.59 points, and the S&P 500 gained 0.9% to finish at 6,765.88. This three-day rally has been partly fueled by hopes for another interest rate cut next month. The CBOE Volatility Index (VIX), often referred to as the market's fear gauge, was down 9.6% to 18.56 on Tuesday, indicating easing investor caution.
Upcoming Market Events and Economic Data
Looking ahead, the U.S. stock and bond markets will be closed on Thursday, November 27, 2025, in observance of the Thanksgiving holiday. Trading will resume on Black Friday, November 28, but with shortened hours, closing at 1:00 PM ET for stocks and 2:00 PM ET for bonds. This shortened trading week often leads to lighter trading volumes, which can sometimes exacerbate market swings.
A major focus for investors remains the Federal Reserve's monetary policy. The Fed is scheduled to hold its next policy meeting on December 9 and 10. Market participants are increasingly confident about another interest rate cut, with probabilities for a 25-basis-point reduction currently hovering around 79%. New York Federal Reserve President John Williams has publicly advocated for further easing, citing a "near stall speed" labor market, which has significantly influenced market expectations.
Recent economic data presented a mixed picture. The Conference Board reported that the consumer confidence index for November fell sharply to 88.7, missing the Zacks Consensus Estimate of 93.2 and reaching its lowest level since April. The Expectations Index, based on consumers' short-term outlook, fell significantly and has stayed below the 80 threshold (indicating an upcoming recession) for 10 consecutive months. On a more positive note, initial weekly jobless claims totaled 216,000, coming in below expectations of 225,000. Additionally, September durable goods orders rose 0.5%, outpacing consensus forecasts of 0.3%. The Fed's Beige Book, offering an anecdotal summary of economic conditions across its districts, is also expected to be released. The November 2025 Consumer Price Index (CPI) data, a key inflation gauge, is anticipated in mid-December.
Major Stock News and Corporate Announcements
The artificial intelligence (AI) sector continued to be a significant driver of market activity and corporate news. Nvidia (NVDA), a leading semiconductor manufacturer, saw its shares rise by 1.8% on Wednesday, rebounding after a 2.6% drop on Tuesday. This Tuesday decline was reportedly due to concerns about increased competition, specifically a report that Meta Platforms (META) is in talks to use Google's (GOOGL) AI chips (TPUs) in its data centers, a deal that could be worth billions and challenge Nvidia's dominant market share. Shares of Google parent Alphabet (GOOGL) continued their recent ascent on Tuesday after the company unveiled its advanced Gemini 3 AI model last week, rising 1.5% and hitting a new all-time high. However, Alphabet's shares were down 1.5% on Wednesday. Dell Technologies (DELL) climbed 6% in post-earnings trading after reporting record orders for its AI servers. Other chipmakers like Advanced Micro Devices (AMD) and Broadcom (AVGO) also saw their shares rise by approximately 3.5% and 3% respectively on Wednesday.
Several companies announced earnings, influencing individual stock movements:
- Urban Outfitters (URBN) saw its stock soar by 10% in post-earnings moves, following strong third-quarter results and an optimistic outlook for the holiday season.
- Autodesk (ADSK) gained 3.5% after beating expectations on its Q3 results and providing robust guidance, leading to an upgrade from Deutsche Bank.
- Conversely, Workday (WDAY) sank 9% despite reporting better-than-expected third-quarter results and a positive full-year subscription revenue outlook, as investors appeared to punish the stock.
- Deere & Co. (DE) dropped 4.5% after the farm equipment giant issued a downbeat forecast for 2026, citing "difficult market conditions" and pressure from tariffs, despite an earnings beat for Q4 2025.
- HP Inc. (HPQ) fell 2% after beating earnings and sales expectations for Q4 but providing a downbeat fiscal 2026 guidance and announcing a significant cost-cutting plan that includes layoffs of 4,000 to 6,000 roles.
- Lee Enterprises (LEE) reported Q4 fiscal 2025 earnings that fell well short of analyst expectations, with revenue declining 12% year-over-year.
- Thunderbird Entertainment Group (TBRD) announced its Q1 fiscal 2026 results, showing a 19% decrease in revenue primarily due to delays in certain productions.
- Best Buy (BBY) reported its Q3 FY26 results on November 25, with domestic revenue increasing 2.1% driven by comparable sales growth.
In other notable corporate news, Robinhood Markets (HOOD) jumped 11.1% after announcing its plans to roll out a futures and derivatives exchange next year. Petco (WOOF) surged 15.3% after delivering mixed quarterly results but raising its fiscal year earnings outlook.
Overall, Wall Street concluded Wednesday's trading session with continued upward momentum, driven by optimism surrounding potential Fed rate cuts and strong performance in the AI sector, even as some economic indicators and corporate earnings presented a more nuanced picture.
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.