U.S. stocks rise as Wall Street looks to add to its winning streak

U.S. stocks rallied broadly Wednesday afternoon as major indexes headed toward their fourth consecutive day of gains, reflecting renewed investor optimism amid ongoing interest rate speculation.

The S&P 500 advanced 0.9%, while the Dow Jones Industrial Average climbed 432 points, or 0.9%. The tech-heavy Nasdaq Composite added 1% as of 1:27 p.m. Eastern time. Market breadth was decisively positive, with gainers outnumbering decliners by more than 3 to 1 on the New York Stock Exchange.

Technology companies spearheaded the advance, with Dell Technologies surging 6.4% after announcing record orders for its artificial intelligence servers. The news comes after a period of volatility for tech stocks, particularly those associated with AI, which had faced selling pressure earlier this month as investors questioned their lofty valuations.

Nvidia, which recently claimed the title of world’s most valuable company, recovered some ground with a 1.7% gain. Other tech heavyweights followed suit, with Microsoft rising 2% and semiconductor manufacturer Broadcom adding 2.9%.

Financial sector stocks contributed significantly to Wednesday’s rally. Online brokerage platform Robinhood Markets jumped 10.7%, leading gains among S&P 500 components, after announcing plans to launch a futures and derivatives exchange in 2025. The move represents a significant expansion of Robinhood’s product offerings beyond stocks and cryptocurrencies.

Retailers continued to provide positive earnings surprises. Urban Outfitters shares leaped 12.1% after becoming the latest retailer to exceed analyst expectations. Similarly, pet supply chain Petco Health and Wellness saw its shares surge 19.8% despite mixed quarterly results, as the company raised its full-year earnings outlook, suggesting confidence in its holiday season performance.

Not all companies participated in the rally, however. Agricultural equipment giant Deere & Company dropped 5.1% after issuing a disappointing forecast, citing pressure from tariffs—a reminder of ongoing trade tensions affecting certain sectors.

The market’s three-day winning streak has been fueled by comments from Federal Reserve officials that have strengthened investor confidence in another interest rate cut at the central bank’s December meeting. According to data from CME Group, traders are now pricing in an almost 83% probability of a rate cut next month.

However, the Fed faces an increasingly complex decision-making environment as it balances competing economic signals. While further rate cuts could support a weakening job market, they risk reigniting inflation pressures. Corporate earnings have largely beaten expectations this quarter, but economic data has presented a mixed picture of the U.S. economy.

Recent reports showed American consumers pulled back on retail spending in September more than economists had anticipated, while consumer sentiment surveys indicate growing anxiety about economic conditions. The government shutdown in October also disrupted the normal flow of economic data, forcing both the Federal Reserve and market participants to catch up with delayed reports.

Trading activity is expected to decrease in the coming days as U.S. markets will close Thursday for the Thanksgiving holiday and operate on a shortened schedule Friday.

In the bond market, the benchmark 10-year Treasury yield held steady at 4%, while the 2-year Treasury yield, more sensitive to Fed policy expectations, edged up to 3.49%.

International markets also showed strength Wednesday. Germany’s DAX index gained 1.1%, and France’s CAC 40 rose 0.9%. Asian markets performed well, with Tokyo’s Nikkei 225 advancing 1.9% in a broad-based rally that included both major exporters and technology companies.

The positive sentiment globally suggests investors are growing more confident that central banks worldwide can navigate the complex economic landscape without triggering a significant downturn or allowing inflation to resurge.