US Market Rally Driven by Tech Stocks and Rate-Cut Bets Ahead of Thanksgiving

Market Performance and November Rally

• 📈 The US market experienced a significant rally to close out November, with the S&P 500 and Nasdaq reclaiming key technical levels.
• 💡 Investor optimism is largely driven by expectations of a Federal Reserve interest-rate cut, with the FOMC meeting approaching.
• 📊 While volume was lighter ahead of the holiday, major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed higher.

Sector Performance and Key Movers

• 💻 Information Technology led the gains, followed by financials, consumer discretionary, and consumer staples.
• 🏥 Health Care and communications services saw declines, with Alphabet (Google) contributing to the latter's drop.
• 🚀 Dell Technologies was a top gainer, up 5.8%, after reporting strong AI server orders and raising its full-year forecast.
• 🛍️ Urban Outfitters surged over 13% on positive earnings reports and beating analyst estimates for net sales.
• 💸 Robinhood Markets jumped 11% following news of a majority stake acquisition in a US-based derivatives exchange.

Declining Stocks and Market Headwinds

• 🚜 John Deere fell 5.7% due to a weak forecast for the year ahead, citing uncertainty over tariffs and trade deals.
• 📉 Alphabet (Google) gave back some recent gains, closing down 1.1% after a significant rally since mid-November.
• ☁️ Zscaler dropped 13%, its largest decline since September 2024, after forecasting annual revenue only slightly above estimates.

Yields and Federal Reserve Outlook

• 📉 Treasury yields, particularly the 10-year note, settled just below the 4% level, with longer-term yields also moving lower.
• 📊 Despite a slight uptick in the two-year yield, traders are pricing in a nearly 90% chance of a 25-basis-point rate cut at the Fed's December meeting.