Highlights
Stocks rose for a fourth consecutive day Wednesday as underlying sentiment remained positive and big technology stocks including Nvidia bounced back. The Dow Jones industrial average and the S&P 500 both advanced 0.7 percent and the Nasdaq gained 0.8 percent. US Treasury yields were mostly lower, the dollar fell, and oil prices rose.
Markets remained supported by positive sentiment on US rate cut hopes. The view gained more momentum with reports that President Trump is leaning toward naming his loyalist, Kevin Hassett, as Fed chair. Analysts are discussing an aggressive course of rate cuts to follow next year. The talk has spurred a recovery in risk appetite this week after a period of caution. Investors are also well aware that stocks tend to gain headed into the December holidays.
AI favorites led the winners Wednesday as Nvidia gained on bargain-hunting, Microsoft rallied, and Oracle jumped after an analyst upgrade.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.