Wall Street Extends Gains as Tech Stocks Lead Four-Day Rally

Major U.S. stock indices closed higher on Wednesday, marking the fourth consecutive day of gains for Wall Street amid robust performances from technology companies and a broadly positive market sentiment. The S&P 500 advanced by 0.7%, while both the Dow Jones Industrial Average and the Nasdaq Composite registered respective increases of 0.7% and 0.8%.

Technology shares were at the forefront of the latest rally, with the majority of sectors within the S&P 500 ending the session in positive territory. The surge in tech stocks comes after a recent period of volatility, which saw significant declines earlier in the month as investors expressed concerns about elevated valuations, particularly in the artificial intelligence sector.

Market optimism was buoyed by Dell Technologies, whose shares rose 5.8% following the announcement of record orders for its AI server offerings. Other notable technology companies experienced gains as well, with Nvidia climbing 1.4%, Microsoft advancing 1.8%, and Broadcom increasing by 3.3%.

Beyond the technology sector, financial stocks contributed to the upward momentum. Robinhood Markets surged by 10.9% after the trading platform revealed plans to launch a futures and derivatives exchange in the coming year, signaling an expansion of its financial product offerings. Retailers also saw strong performances, with Urban Outfitters posting a 13.5% increase after reporting earnings that exceeded expectations.

Petco shares jumped 14.5% following an upgraded earnings outlook for the fiscal year, despite mixed quarterly results. However, not all sectors shared in the positive momentum. Deere & Company experienced a 5.7% decline after the agricultural equipment manufacturer issued a subdued forecast, citing pressures such as tariffs impacting its business outlook.

This week's trading was shortened due to the Thanksgiving holiday, with markets closed on Thursday and operating under reduced hours on Friday. Investor sentiment has been influenced by growing expectations that the Federal Reserve may implement another interest rate cut at its December meeting. According to CME Group data, traders are pricing in an 83% probability of a rate cut next month. The central bank, which has already reduced rates twice this year, faces the challenge of balancing efforts to support a slowing job market against the risk of fueling inflation.

Bond markets reflected these expectations, as the yield on the 10-year Treasury slipped to 3.99%, while the 2-year Treasury yield edged up to 3.48%. Although most recent corporate earnings reports have been positive, economic data remains mixed. Recent figures show that consumer spending at U.S. retailers in September fell short of forecasts, and consumer confidence indicators point to increased caution among Americans regarding the economic outlook.

Despite these uncertainties, the latest rally has largely reversed earlier losses for major indices. The S&P 500 climbed by 46.73 points to close at 6,812.61. The Dow Jones Industrial Average added 314.67 points, settling at 47,427.12, while the Nasdaq Composite ended the session up by 189.10 points at 23,214.69.

International markets echoed the positive sentiment. European indices, such as Germany's DAX and France's CAC 40, gained 1.1% and 0.9% respectively. In Asia, Japan's Nikkei 225 advanced by 1.9%, reflecting broad-based gains across major exporters and technology stocks.

The recent uptrend demonstrates investor confidence in a potential year-end rally, driven by hopes of further monetary easing and resilient corporate performance, even as global economic indicators remain mixed and central banks weigh their policy options.