U.S. Stock Market Rallies Ahead of Thanksgiving Holiday, Fed Rate Cut Hopes Fuel Gains

Market Overview - The U.S. stock market opened higher on November 26, 2025, continuing a multi-day rally driven by expectations of a Federal Reserve interest rate cut in December and mixed corporate earnings and economic data [1] - Major benchmark indexes showed strong performance, with the Nasdaq Composite up 0.7%, S&P 500 up 0.6%, and Dow Jones Industrial Average up 0.5% in early trading [2] - The Nasdaq gained 3.4%, S&P 500 up 2.5%, and Dow up 1.9% through the first two trading days of the week [2] Federal Reserve Expectations - Growing optimism surrounds the Federal Reserve's monetary policy, with traders anticipating an 85% probability of a quarter-point rate cut at the December 10th FOMC meeting [3] - This marks a significant shift from the previous week, where the odds were more evenly split between a cut and a hold [3] - Softer inflation signals and easing Treasury yields are contributing to investor confidence, particularly in growth sectors [3] Upcoming Economic Data - Key economic data releases scheduled for November 26 include Euro Short Term Rate, Housing Units Authorized By Building Permits, New Residential Construction data, Manufacturer's Shipments, Inventories, and Orders (M3) Survey, and Unemployment Insurance Weekly Claims Report [4] - These reports are crucial for assessing the health of the housing market, manufacturing sector, and labor market, which are closely monitored by the Federal Reserve [4] Company-Specific News - Alphabet (GOOGL) shares rose 1.5% after unveiling its advanced Gemini 3 AI model, trading slightly down less than 1% today after hitting a new all-time high [6] - Nvidia (NVDA) shares saw a modest recovery, up 0.4% after a 2.6% decline due to reports of Meta Platforms potentially using Google's AI chips [6] - Advanced Micro Devices (AMD) and Broadcom (AVGO) both rose approximately 1% today, following mixed performances yesterday [6] - Urban Outfitters (URBN) stock soared 12% post-earnings, while Autodesk (ADSK) surged 6.5% after raising its full-year projections [6] - Workday (WDAY) stock sank 8% after its earnings report, and Deere & Co. (DE) dropped 3.5% post-earnings due to a downbeat forecast [6][7] - Zscaler (ZS) dropped 7.15% despite better-than-expected results, while Uber Technologies (UBER) gained 0.73% after announcing the launch of fully driverless Robotaxi operations [10]