Wall Street Extends Rally on Rate Cut Hopes and Mixed Economic Signals

Market Overview - U.S. stock markets closed higher on November 26, 2025, with all three major indexes posting gains, reflecting a broad-based rally across various sectors [1][9] - The S&P 500 rose approximately 0.8%, the Dow Jones Industrial Average gained around 0.8% (adding roughly 395 points), and the Nasdaq Composite advanced about 0.9% [2] - The three-day rally has been partly fueled by hopes for another interest rate cut next month, with the CBOE Volatility Index (VIX) down 9.6% to 18.56, indicating easing investor caution [2] Economic Data - The consumer confidence index for November fell sharply to 88.7, missing the Zacks Consensus Estimate of 93.2, marking its lowest level since April [5] - Initial weekly jobless claims totaled 216,000, below expectations of 225,000, while September durable goods orders rose 0.5%, surpassing consensus forecasts of 0.3% [5] - The Fed's Beige Book is expected to be released, and the November 2025 Consumer Price Index (CPI) data is anticipated in mid-December [5] Federal Reserve Focus - Investors are focused on the Federal Reserve's monetary policy, with the next policy meeting scheduled for December 9 and 10 [4] - Market participants are increasingly confident about another interest rate cut, with probabilities for a 25-basis-point reduction currently around 79% [4] Corporate Earnings and Stock Movements - Nvidia (NVDA) shares rose by 1.8% after a previous decline, amid concerns about competition from Meta Platforms (META) and Google's (GOOGL) AI chips [6] - Urban Outfitters (URBN) stock soared by 10% following strong third-quarter results and an optimistic holiday outlook [7] - Robinhood Markets (HOOD) jumped 11.1% after announcing plans for a futures and derivatives exchange next year [8] Notable Stock Performance - Dell Technologies (DELL) climbed 6% in post-earnings trading after reporting record orders for AI servers [6] - Workday (WDAY) sank 9% despite better-than-expected third-quarter results, while Deere & Co. (DE) dropped 4.5% after issuing a downbeat forecast for 2026 [12] - HP Inc. (HPQ) fell 2% after beating earnings expectations but providing a downbeat fiscal 2026 guidance [12]