Stocks stage powerful comeback ahead of Thanksgiving. It wasn’t enough to erase November’s losses.

Market Performance - U.S. stocks are on track for their best Thanksgiving-week gains in at least 13 years, with the Dow Jones Industrial Average and S&P 500 each finishing up by almost 0.7% on Wednesday, bringing their week-to-date advances to 2.6% and 3.2% respectively [1][3] - The Nasdaq Composite ended 0.8% higher on Wednesday, with a week-to-date gain of 4.2%, positioning it for its best Thanksgiving-week performance since 2008 [3] Sector Insights - Gains from Alphabet Inc. and Broadcom Inc. have revitalized the AI trade, while expectations for Federal Reserve interest-rate cuts have supported rate-sensitive small caps and other market segments [2] - The S&P 500's recent performance above its 50-day moving average is seen as a positive indicator for near-term trends, although the index is still down 0.4% for November [4] Investor Sentiment - Market participants are positioning themselves for a potentially positive environment for the remainder of the year and into 2026, driven by a strong third-quarter earnings season and lower valuations, particularly in the tech sector [6] - The anticipation of a December rate cut by the Federal Reserve has increased significantly, with expectations rising to 85% from 30.1% a week prior, following comments from Fed officials [7] Economic Outlook - The market is responding positively to the prospect of a long-term easing cycle that could extend into 2026, fostering a risk-on trading sentiment as confidence in this cycle returns [9]