The U.S. stock market opened higher on Wednesday, November 26, 2025, extending a multi-day rally as investors continued to price in increasing expectations for a Federal Reserve interest rate cut in December and reacted to a mix of corporate earnings and economic data. This positive momentum comes ahead of the Thanksgiving holiday, which will see markets closed on Thursday and an early close on Friday.
Major Market Indexes Show Strength
Major benchmark indexes demonstrated robust opening performance, building on two days of significant gains. The tech-heavy Nasdaq Composite opened up 0.7%, while the broader S&P 500 advanced by 0.6%. The blue-chip Dow Jones Industrial Average also saw a positive start, rising 0.5% in early trading. This strong opening continues a bullish trend for the holiday-shortened week, with the Nasdaq having gained 3.4% through the first two trading days, the S&P 500 up 2.5%, and the Dow up 1.9%. Yesterday, the Dow led the charge, appreciating 1.4%, or 663 points.
The overarching sentiment driving these gains appears to be a growing optimism surrounding the Federal Reserve's monetary policy. Traders are aggressively anticipating a quarter-point rate cut at the upcoming December 10th Federal Open Market Committee (FOMC) meeting, with probabilities nearing 85%. This represents a significant shift from just a week ago, when the odds were more evenly split between a cut and a hold. Supporting this outlook are softer inflation signals and a general easing of Treasury yields, which tend to bolster investor confidence, particularly in growth-oriented sectors. However, the yield on the 10-year Treasury note did tick up slightly to 4.03% from 4.00% at Tuesday's close.
Upcoming Market Catalysts
With the Thanksgiving holiday approaching, market activity is expected to temper towards the end of the week. However, several key economic data releases are scheduled for today, Wednesday, November 26, which could provide further direction. These include the Euro Short Term Rate, Housing Units Authorized By Building Permits, New Residential Construction data, the Manufacturer's Shipments, Inventories, and Orders (M3) Survey, and the Unemployment Insurance Weekly Claims Report. These reports offer crucial insights into the health of the housing market, manufacturing sector, and labor market, all of which are closely watched by the Federal Reserve in its policy decisions.
Beyond today, the primary focus remains on the Federal Reserve's December meeting. The high probability of a rate cut is a significant factor shaping current market expectations and could continue to influence trading activity in the coming weeks.
Company-Specific News Driving Stock Movements
Several major public companies are making headlines today, with their stock prices reacting to recent corporate announcements and earnings reports:
- Alphabet (GOOGL): The Google parent continued its upward trajectory, having risen 1.5% yesterday after unveiling its advanced Gemini 3 AI model last week. Shares were trading slightly down less than 1% today after hitting a new all-time high on Tuesday, as the company inches closer to a staggering $4 trillion market capitalization.
- Nvidia (NVDA): After a 2.6% decline yesterday following reports that Meta Platforms (META) might utilize Google's AI chips in its data centers, Nvidia shares saw a modest recovery, ticking 0.4% higher in early trading today.
- Chipmakers Advanced Micro Devices (AMD) and Broadcom (AVGO) both saw their shares rise by approximately 1% today. This follows a mixed performance yesterday, where AMD fell 4.1% while Broadcom gained 2.6% after an impressive 11% surge on Monday.
- In post-earnings movements, Urban Outfitters (URBN) experienced a significant jump, with its stock soaring 12%. Autodesk (ADSK) also surged, up 6.5%, after raising its full-year projections for adjusted EPS and revenue. Dell Technologies (DELL) advanced 2.5% following its earnings release.
- Conversely, Workday (WDAY) saw its stock sink 8% after its earnings report. Deere & Co. (DE) dropped 3.5% in post-earnings trading, adding to a 5% decline yesterday due to a downbeat forecast citing tariffs. HP (HPQ) also fell 2.5% after its corporate announcement.
- Zscaler (ZS) dropped 7.15% despite reporting better-than-expected top and bottom-line results and raising its fiscal 2026 adjusted EPS and revenue outlook.
- Uber Technologies (UBER) gained 0.73% after announcing the launch of Level 4 fully driverless Robotaxi commercial operations in Abu Dhabi in collaboration with WeRide Inc. (WRD), which also saw a gain of 1.52%.
- In pre-market trading, Webull Corporation (BULL) jumped 6.32%, and Tesla (TSLA) gained 0.82%.
As the market heads into the holiday period, the focus remains on the Federal Reserve's next moves and the continued performance of key technology and growth stocks, particularly those in the burgeoning AI sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.