U.S. stocks extended their winning streak on Wednesday, delivering a fourth consecutive session of gains as investors embraced early holiday optimism and renewed confidence in technology leaders. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all advanced, supported by strong performances from major tech names and rising expectations of a December Federal Reserve rate cut. The rally, which comes ahead of Thursday’s Thanksgiving holiday, has lifted sentiment across global markets, though analysts warn that enthusiasm may face a reality check as investors prepare for a pivotal month in monetary policy.

Tech Momentum Drives Holiday-Week Gains

Technology and AI-linked stocks were again at the center of the market’s strength. Oracle climbed nearly 4% following an endorsement from Deutsche Bank, which argued that the recent pullback created an appealing entry point for long-term investors. The move helped lift sector giants Nvidia and Microsoft in sympathetic trading, reinforcing the role of large-cap tech in anchoring broader index performance this year.

Historically, Thanksgiving week tends to deliver positive returns as trading volumes thin and investor sentiment improves. Market strategists noted that the psychological backdrop remains supportive, particularly for growth-oriented sectors that benefit from expectations of falling interest rates. Eric Diton of The Wealth Alliance emphasized that “everyone’s feeling good,” but cautioned that the real test will come once markets reopen after the holiday break.

Fed Expectations Could Shape the Next Move

Investors are increasingly convinced that the Fed will loosen policy next month, with futures markets now pricing an 85% probability of a 25-basis-point rate cut. While expectations have helped fuel the November recovery, they also raise the risk of disappointment if policymakers decide to stay cautious. Analysts note that the recent cooling in economic indicators could justify easing, but the Fed has repeatedly signaled a data-dependent approach amid persistent pockets of inflation.

Speculation about future leadership at the central bank has also added a new layer to market outlooks. If Kevin Hassett assumes the role of Fed chair once Jerome Powell steps down, some economists, including Bank of America’s Aditya Bhave, expect a more dovish approach that could push rates lower over the medium term. Such a shift would reinforce projections that the S&P 500 could reach 7,400—or even 8,000—by the end of 2026.

Macro Headlines Shape Global Sentiment

Beyond the U.S., investors digested a mixed set of global data. Apple is on track to overtake Samsung in smartphone shipments for the first time in 14 years, reflecting steady consumer demand despite competitive and regulatory pressures. Meanwhile, China’s industrial profits fell 5.5% year over year in October, the sharpest decline since June and a signal of ongoing challenges tied to soft exports and domestic policy uncertainty.

AI-driven labor disruption also re-entered the conversation after an MIT study found that 11.7% of U.S. jobs—representing $1.2 trillion in wages—could be replaced by automation. And in digital assets, Bitcoin’s sharp November pullback has raised concerns of further downside through year-end, according to Compass Point.

Looking ahead, market direction will hinge on the Fed’s December decision, global tech earnings momentum, and whether risk appetite can withstand elevated expectations following this week’s holiday-driven optimism.