US equities advanced on Wednesday as Wall Street attempted to build on two straight days of gains, even as the broader market remains on track for a down month.
The Dow Jones Industrial Average rose 171 points, or 0.4%. The S&P 500 gained 0.5%, while the Nasdaq Composite advanced 0.7%. Nvidia climbed more than 2%, rebounding from its recent pullback, and Microsoft added about 1%.
The move higher followed a volatile Tuesday session that ended with all three major indexes in positive territory.
The Dow Jones Industrial Average closed more than 660 points, or 1.4%, higher on Tuesday, marking its third consecutive winning session.
Strength in major technology names also supported the broader market.
Alphabet hit fresh record highs after a report indicated Meta Platforms may use the company’s TPU chips starting in 2027.
Nvidia, however, fell more than 2.5% as investors weighed shifting dynamics in the AI hardware landscape.
Despite the recent rebound, November has been a difficult month for equities.
Concerns about high valuations — particularly in technology and AI-linked stocks — have cooled momentum after a strong year for market leaders.
The S&P 500 is down around 1% so far in November, the Nasdaq Composite has fallen about 3%, and the Dow has declined roughly 1%.
Fed rate-cut expectations
Investors continued monitoring developments that could influence the Federal Reserve’s December policy decision.
Markets are pricing in more than an 80% likelihood of a quarter-point rate cut next month, according to the CME FedWatch tool, as commentary from policymakers continues to tilt dovish.
Treasury Secretary Scott Bessent told CNBC on Tuesday that there is a “very good chance” President Donald Trump will announce the next Federal Reserve chair before Christmas.
Bessent said he is still interviewing candidates, but expectations have begun to coalesce around White House National Economic Council Director Kevin Hassett, following reporting from Bloomberg that he has emerged as a frontrunner.
Hassett is considered more inclined toward lower interest rates, further shaping the market’s interpretation of the upcoming policy trajectory.
Jobless claims fall to lowest level since April
Fresh labour-market data added another layer to the macro picture.
Initial applications for US unemployment benefits fell to 216,000 in the week ended Nov. 22, a decline of 6,000 and the lowest level since mid-April.
Economists surveyed by Bloomberg had expected 225,000.
Continuing claims — viewed as a proxy for the number of people receiving ongoing benefits — rose slightly to 1.96 million in the previous week.
The data indicate that employers are holding on to existing workers even as hiring has slowed.
Large companies, including Verizon and Amazon, have announced job cuts in recent weeks, but actual layoffs across the broader economy have yet to see a meaningful spike.
However, recurring claims have trended upward since September and remain near levels last seen during the post-pandemic labour recovery.
While initial claims remain subdued, it has become increasingly difficult for those already unemployed to secure new positions.
As markets weigh moderating economic data, shifting policy expectations, and ongoing sector-specific volatility, Wednesday’s early gains reflected cautious optimism heading into the final weeks of the year
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