Wall Street extended its recovery on Tuesday, with major United States indices advancing as renewed confidence in technology stocks and rising expectations of a December interest rate cut from the Federal Reserve lifted investor sentiment ahead of the Thanksgiving holiday.
The Dow Jones Industrial Average added 314.7 points or 0.7% to 47,427.1, the S&P 500 gained 46.7 points or 0.7% to 6,812.6, and the Nasdaq Composite lifted 189.1 points or 0.8% 23,214.7.
All three benchmarks were positioned for a fourth straight day of gains, rebounding from last week’s wobble when concerns over stretched tech valuations weighed on markets.
The recent anxiety around high-growth valuations eased last week following Nvidia’s upbeat quarterly report and positive guidance, which rekindled enthusiasm for artificial intelligence-linked stocks.
Confidence was further bolstered as Dell Technologies lifted 5.8% after issuing a fourth-quarter revenue forecast that topped consensus expectations, reinforcing the resilience of AI-related enterprise demand.
Workday fell 7.9% after its third-quarter subscription revenue missed estimates.
Deere also slid 5.7% following weaker-than-expected annual profit guidance, with the company citing tariff pressures.
Fresh economic data added to the constructive tone. durable goods orders for September surpassed forecasts, signalling firmer-than-expected corporate spending.
Although the data were delayed due to government shutdown disruptions, markets viewed the figures as a positive signal for business investment.
Initial jobless claims came in below expectations, yet continuing claims continued their upward grind, underscoring recent survey findings that Americans’ perceptions of labour market conditions are softening.
Investors continue to track indicators that may influence the Federal Reserve’s next policy decision. According to the CME Group FedWatch Tool, traders are pricing in an 84.8% chance that the central bank will deliver a 0.25% rate cut in December.
U.S. equity markets will be closed on Thursday for Thanksgiving, reopening on Friday for a shortened session that will finish at 1 pm ET (6 pm GMT).
On the bond markets, yields on the 10-year were down 0.2% to 3.992% while 2-year yields lifted 0.6% to 3.479%.
