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Informist, Thursday, Nov. 27, 2025                                      Tel +91 (22) 6985-4000

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Equity Alert: US indices close higher Wed as Fed rate cut probability rises

 

MUMBAI--0730 IST--Benchmark equity indices in the US ended higher Wednesday for the fourth consecutive session on hopes that the US Federal Reserve will cut interest rates at its next meeting, and a rebound in artificial intelligence-related stocks, which had dragged markets down last week. Trader sentiment was bullish ahead of the Thanksgiving holiday and the S&P 500 index, the Nasdaq Composite, and the Dow Jones Industrial Average are headed for a significant weekly gain when trading resumes in the shortened Friday session.

 

"Thanksgiving week is generally a strong week in the markets. Everyone's feeling good. We're also coming to the best stretch of the year for stocks – November to April," CNBC quoted Eric Diton, president and managing director at The Wealth Alliance, as saying. "It's hard to not stay bullish here." 

 

Shares of airline companies were sharply higher on one of the busiest travel days of the year. Shares of American Airlines Group rose almost 4% and those of Delta Air Lines were over 3% higher. Broader market gains were boosted by a 4% rise in technology company Oracle, after Deutsche Bank reaffirmed its bullish stance on the company. Meanwhile, Nasdaq heavyweight Nvidia Corp.'s shares ended more than 1% igher, recovering from a recent fall. Shares of Microsoft ended almost 2% higher.

 

The US central bank's Beige Book report Wednesday said employment declined slightly in mid-November, but noted "more districts reported contacts limiting headcount using hiring freezes, replacement-only hiring and attrition than through layoffs," Reuters reported. Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 216,000 for the week ended Nov. 22, the lowest level since April. Economists polled by Reuters had forecast 225,000 claims for the week.

 

Traders continued to place bets on an interest rate cut by the US Federal Reserve. Fed fund futures traders are pricing in an over 84% probability that the apex bank will cut key rates by 25 basis points at its policy meeting in December, according to data from CME FedWatch tool. This prediction is sharply higher than a week ago, when traders were pricing in a 30% chance of such a cut.

 

Following are the closing levels of US indices Wednesday:

 

Index	Level	Change in %
S&P 500	6812.61	0.69
NASDAQ Composite	23214.69	0.82
Dow Jones Industrial Average	47427.12	0.67

 

(Eshitva Prakash)

 

End

 

US$1 = INR 89.27

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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